Re:Negative Rates Are Rewriting the Rules of Modern Finance
by Litmus2336 on Monday September 30, 2019 @05:07PM
(#21119670)
The negative interest rates discourages holding money and encourages spending (and investment), which drives inflation. I do not believe negative interest rates destroy money, but I am not an expert. I cannot find any literature to prove or dispute that.
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Re:Negative Rates Are Rewriting the Rules of Modern Finance
by samsonradu on Tuesday October 01, 2019 @05:27AM
(#21123546)
You're right, it does encourage spending and investment. However a part of the money does eventually go into negative interest rate assets (due to regulations etc.) and I believe that shrinks the money supply.
Not an expert either.