The Traderszone Network

Published in TZ Latest News 23 November, 2014 by The TZ Newswire Staff

The Consequences of Imposing Negative Interest Rates

Submitted by Pater Tenebrarum via Acting-Man blog,

Negative Interest Rates and Capital Consumption

Ever since the ECB has introduced negative interest rates on its deposit facility, people have been waiting for commercial banks to react. After all, they are effectively losing money as a result of this bizarre directive, on excess reserves the accumulation of which they can do very little about.

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