Unnaturally Negative Interest Rates

Negative interest rates – you pay for the privilege of keeping your money in the bank – are current monetary policy in Japan and some European countries.  Negative interest rates pose questions: Are they here? Why would anyone pay the bank to keep money?  Do they make economic sense? Why would a central bank set negative interest rates? Most importantly, should a central bank make negative interest rates its policy?   In what follows, we try to answer some of these.

– See more at: http://www.indexologyblog.com/2016/04/12/unnaturally-negative-interest-rates

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