3 ms·
Any reasoning you want to give on this? Negative nominal interest rates already exist in European countries as a counterexample.
by reducesuffering 6y ago
Any reasoning you want to give on this? Negative nominal interest rates already exist in European countries as a counterexample.
- acchow 6y agoFor a consumer to borrow funds the nominal rate is negative? Where have you seen this? I'd like to see a citation. The reason this rate cannot be negative is that demand will immediately fill it up and use it for arbitrage (shove the money under a mattress and pay back the loan later) before it can become negative.