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A comment on Bank of Japan, in a Surprise, Adopts Negative Interest Rate. Parent comment

Re:Bank of Japan, in a Surprise, Adopts Negative Interest Rate by stephenboyd on Tuesday February 02, 2016 @08:05AM (#11019173)
Like most countries, Japan's government runs a deficit and depends on selling bonds for funding.
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Re:Bank of Japan, in a Surprise, Adopts Negative Interest Rate by jessaustin on Tuesday February 02, 2016 @09:16AM (#11019502)
How does that work with a negative rate? Somewhat equivalently, how does that work with any rate whatsoever?
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Re:Bank of Japan, in a Surprise, Adopts Negative Interest Rate by patrickmcmanus on Tuesday February 02, 2016 @10:32AM (#11020020)
it means they can sell the bonds for less (i.e. pay less interest) because one source of competition, depositing the money rather than buying the bond, is less attractive for the captial. As with all credit - that's a great dynamic if you're using the funds for capital infrastructure to strengthen your overall situation, but kinda questionable if you're using it for living expenses.
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