Negative Interest Rates the New Normal Next Time Economies Slump

From bloomberg.com

While financial markets are focused on the Federal Reserve’s looming rate increase, policy makers and economists are already changing their attitude toward negative rates. European Central Bank President Mario Draghi is open to reducing the rate he charges banks to leave money in his coffers overnight further into negative territory. Bank of England Governor Mark Carney has also revised his thinking to say the U.K. benchmark could fall below 0.5 percent if needed having previously worried deeper cuts would roil money markets. Meantime, Fed Chair Janet Yellen said last week that “if circumstances were to change” ... (full story)