At the turn of the millennia, negative interest rates were somewhat of an economic fantasy: the same way that lightspeed travel is a fantasy for theoretical physicists. Economists had speculated about what negative interest rates would mean, but nobody actually ever expected this phenomenon to exist in the real world.
Today negative interest rates dominate the market for sovereign bonds and are the staple of many central banks. But how in the world does this make sense? Who in their right mind would pay someone to take their money? … All this and more in today’s episode! Enjoy!
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