3 ms·

Couldnt people still save "cash" electronically in a savings account, say?

• 1001101 9y ago
  What's the nominal/real yield on that account? When savings rates are negative nominal (which cashless may presage) or negative real, the carry on hard assets becomes positive, making them more attractive.
  • pilsetnieks 9y ago
    Cash isn't getting any more valuable, either. What are you suggesting? Hoarding gold bars?
    • Tijdreiziger 9y ago
      The ECB interest rates have already been negative since 2014. I'm pretty sure that if there was no risk of a bank run, banks would follow by also setting their interest rates to be negative.
      • 1001101 9y ago
        ECB also banned 500 euro notes, which may also be another leading indicator. Sweden's housing market is in a downturn right now. If it starts looking like the early 90s, deeper negative rates might seem attractive (they are currently at -0.5% in SE).
        • Tijdreiziger 9y ago
          Ah, I didn't know that there are already banks with negative interest rates. I'm surprised Swedes haven't started keeping sums of cash in their homes. In the Netherlands, they had been going down until the +0.05% mark, where they have now stayed for some time.