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Negative rates won't send traders out of business. There are still plenty of trades to make in a negative rate environment. In any case, I'd be interested to he
by rpz 8y ago
Negative rates won't send traders out of business. There are still plenty of trades to make in a negative rate environment. In any case, I'd be interested to hear your argument on why small negative rates are good for the economy in general.
- Nasrudith 8y agoNot the poster but the theory is that it discourages deflationary behavior of funds sitting around and keeping demand down. Personally I suspect that it is overly risk boosting and encourages economically perverse behavior but it apparently hasn't proven disastrous yet in the locales that have tried it.