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Negative interest rates - 21st century idea

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  • First Post: Oct 23, 2016 7:23am Oct 23, 2016 7:23am
  •  merquise
  • | Joined Jun 2014 | Status: Member | 371 Posts
An extremely interesting text about negative interest rates appeared on BI, and what struck me was the last paragraph dealing with Kenneth Rogoff's book "The Curse of Cash" where he argues that in the future a bigger negative rates would be imposed (-4% , -5%) and a mechanism to prevent ordinary people to withdraw that cash by eliminating it completely and going digital.

http://www.businessinsider.com/econo...tbooks-2016-10

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So, in Rogoff’s mind, in order for central bankers to have the option to set significantly negative rates, we have to get rid of cash — or at least big bills above, say, $10 or 10 euros.

This is pure madness ///
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