JEast Posted November 20, 2013 Share Posted November 20, 2013 As it appears that the inter-bank market will remain broken in the US for a little longer and will not return to normalcy anytime soon, noticed that it looks like the ECB is floating a story that they may soon go to negative rates for excess cash as their inter-bank market remains broken too. http://www.bloomberg.com/news/2013-11-20/ecb-said-to-consider-mini-deposit-rate-cut-if-more-easing-needed.html Cheers JEast Link to comment Share on other sites More sharing options...
wisdom Posted November 20, 2013 Share Posted November 20, 2013 Summers and Krugman are proposing something similar. I was reading someplace a possibility of sharp drop in rates (say negative 4%) to shock the savers into buying assets. It would be like a tax. Link to comment Share on other sites More sharing options...
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