4 ms·
In the scenario described, money is no longer a scarce good. At 0%, they couldn't give it away (to banks). When it is negative, the fed is paying banks to tak
by valakon 11y ago
In the scenario described, money is no longer a scarce good. At 0%, they couldn't give it away (to banks). When it is negative, the fed is paying banks to take it.
- SilasX 11y agoEven then, negative doesn't make sense as a market price. Give me X dollars, and I only have to return Y such that Y is less than X? "I'll have infinity, thanks!"