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A comment on Negative Rates Are Rewriting the Rules of Modern Finance. Parent comment

Re:Negative Rates Are Rewriting the Rules of Modern Finance by imtringued on Monday September 30, 2019 @05:35PM (#21119884)
You get $1000. You pay back $950. The monetary supply increased by $50.
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Re:Negative Rates Are Rewriting the Rules of Modern Finance by samsonradu on Tuesday October 01, 2019 @05:23AM (#21123525)
Uhm... no.

I borrow $1000 and promise to pay back $1050. Lender now has a $1050 IOU which he will likely put into circulation (borrow against it, trade it etc.). Monetary supply just increased by $50.

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