Re:Swedes rebelling against a cashless society (2018)
by raxxorrax on Friday March 06, 2020 @07:41AM
(#22503107)
If the mechanism of a negative interest rate requires stripping people of cash, I doubt it can deliver what it promises.
I am no economist and those might be more used to negative interest rate if they include inflation, but on the other hand it is just another tool for central banks to perhaps stimulate the economy. In my personal opinion, these monetary policies have not been all too impressive.
But no, I certainly wouldn't give up cash for a central bank to have some tool with questionable efficiency. If we are talking about wealth distribution, we should talk about limiting inheritances or something like that. Otherwise I would assume that bankers are more interested in pumping money in the economy.
I would stuff my cash into my mattress if interest rates become too low. That would probably have the effect of increasing them again if enough people do so.
We have a problem with private losses being put on the tab of tax payers. You would need to solve that problem too aside from the lacking privacy of digital cash to make me think about it.
Some economists are also critical about these policies, so it isn't really clear, if negative rate will help in the first place. That some are afraid of deflation might have something to do with debt, couldn't that just be the case?
I am no economist and those might be more used to negative interest rate if they include inflation, but on the other hand it is just another tool for central banks to perhaps stimulate the economy. In my personal opinion, these monetary policies have not been all too impressive.
But no, I certainly wouldn't give up cash for a central bank to have some tool with questionable efficiency. If we are talking about wealth distribution, we should talk about limiting inheritances or something like that. Otherwise I would assume that bankers are more interested in pumping money in the economy.
I would stuff my cash into my mattress if interest rates become too low. That would probably have the effect of increasing them again if enough people do so.
We have a problem with private losses being put on the tab of tax payers. You would need to solve that problem too aside from the lacking privacy of digital cash to make me think about it.
Some economists are also critical about these policies, so it isn't really clear, if negative rate will help in the first place. That some are afraid of deflation might have something to do with debt, couldn't that just be the case?