What’s Wrong with Negative Interest Rates
So I’ve been reading an article on AP about negative interest rates and it really didn’t seem so bad. There were a bunch of quotes in it that basically sounded like “NEGATIVE RATE BAD!! SCARY!!” but without actually having any content pertaining to the possible risks.
It seems totally intuitive to me that you would do this if you wanted to punish people for huddling up avoiding investment and keeping every cent in the bank instead of stimulating the economy. It also seems like an efficient tool for battling capital strikes.
What is the massive risk that people are afraid of there?