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> negative interest rates Wait, I don't get this. Do I get paid to take out a mortgage?
by core-questions 8y ago
> negative interest rates
Wait, I don't get this. Do I get paid to take out a mortgage?
- deleted 8y ago[deleted]
- wemdyjreichert 8y agohttps://www.investopedia.com/terms/n/negative-interest-rate-policy-nirp.asp https://www.investopedia.com/terms/n/negative-interest-rate-... It's an extreme expansionary policy designed to keep the economy afloat by making people pay money to keep it in banks. Normally this is done by dropping interest rates below inflation; this is the nuclear option for economies. The fact that they are still stuck on this is not a good sign for what may happen to Europe next recession. This is one of the inherent limitations of a shared currency: Greece needs expansion; Germany needs contraction. Help one; harm the other. It's very difficult to do the kind of things America (or most other nations) can do with Europe for this reason.
- HansLandaa 8y agoHe's likely referring to negative real interest rates where inflation is higher than the interest rate.
- Simon_says 8y agoNo, but your bank will charge you to store your money.
- xiphias2 8y agoAlso the bank will get payed, it just doesn't pass the benefits.
- collyw 8y agoIn Europe and we took out a mortgage last year. The rate at which the bank gets money from the central bank is negative, and your local bank adds on 1.5 to that (for a variable) rate from what i remember, so overall the rate was 0.8% I think. So you don't get paid, but you do get subsidized.