And another unintended consequence of negative interest rates
klementoninvesting.substack.com
In the UK, the Bank of England is pondering whether it should introduce negative interest rates. The experience in countries like Germany, Switzerland, and Sweden shows that this is unlikely to help the economy or boost inflation. With negative interest rates, banks have an even lower incentive to lend than before because their interest margins become even smaller and many loans may simply become unprofitable.
And another unintended consequence of negative interest rates
And another unintended consequence of…
And another unintended consequence of negative interest rates
In the UK, the Bank of England is pondering whether it should introduce negative interest rates. The experience in countries like Germany, Switzerland, and Sweden shows that this is unlikely to help the economy or boost inflation. With negative interest rates, banks have an even lower incentive to lend than before because their interest margins become even smaller and many loans may simply become unprofitable.