Re:Inequality, Interest Rates, Aging, and the Role of Centra...
by cuteboy19 on Friday December 30, 2022 @09:24AM
(#34185250)
The central bank would have very low interest rates for deposits. It's not even a farfetched idea. Central bank digital currency is exactly this concept implemented in a general way
The central bank account would be safer than government bonds, meaning in a flight to safety interest rates on government debt would rise as money drained to the safer central bank account. Exactly the opposite of what you want when you may need government to act urgently and expansively to solve whatever problem has occurred and likely only the elected government has the authority to solve that problem.