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> Without cash, depositors would have to pay the negative interest rate to keep their money with the bank, making consumption and investment more attractive. Th
by apo 7y ago
> Without cash, depositors would have to pay the negative interest rate to keep their money with the bank, making consumption and investment more attractive. This would jolt lending, boost demand, and stimulate the economy.
Or... it would spawn the mother of all asset bubbles in Bitcoin and to a lesser extent gold. Watch for anti-Bitcoin legislation as a canary in the coal mine signaling that the exits are about to slam shut.
- chillacy 7y agoPretty much... bitcoin/gold are not particularly productive assets either (verses investing in businesses) so I don't see how that helps the economy recover.