Display:
Well, if rates are negative then I will always borrow as much as I can, turn it into cash, and not spend it. How about that? This is certain gain.

Unless you design some super clever banknotes that have an adjustable ink so that it will lose nominal in the process. Until then, negative interest rates won't work.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Thu Dec 4th, 2008 at 05:37:10 AM EST
[ Parent ]
You don't need adjustable ink - Wörgl did basically this in 1932. You had to buy some sort of sticker each month for 1% of the value of the note, in order to maintain its validity, thus in effect having the value deprecate each month. Apparently it was very  successful, at least in the short term, until the Austrian Central Bank put a stop to it about a year later.
by gk (g k quattro due due sette "at" gmail.com) on Thu Dec 4th, 2008 at 06:13:22 AM EST
[ Parent ]

Display:
Login
. Make a new account
. Reset password
Occasional Series