Once upon a time, there came a negative rate...

Once upon a time, there came a negative rate...
A cartoonist's look at what happens when rates go negative.
FEB 11, 2016
By  Bloomberg
Haruhiko Kuroda and Mario Draghi may be among the few economists who still think negative interest rates are a good idea. The Bank of Japan governor's decision last month to charge banks on some excess reserves, a year and a half after his counterpart at the European Central Bank took a similar path, means that a quarter of the world economy is now in the sub-zero club. Yet just 27 percent of respondents in a Bloomberg survey say negative rates will help Kuroda reach his goal of boosting feeble inflation, and only 42 percent say the policy is succeeding in the euro area. While the strategy has shown it can weaken currencies — one channel for spurring consumer prices — the discussion over how long that can last and the likelihood of unintended consequences is getting louder. (More: Putting negative interest rates in perspective) The following is a cartoonist's view on what happens when rates go negative.

Latest News

Trio of advisors switch for 'Happier' times at LPL Financial
Trio of advisors switch for 'Happier' times at LPL Financial

Former Northwestern Mutual advisors join firm for independence.

Indie $8B RIA adds further leadership talent amid growth drive
Indie $8B RIA adds further leadership talent amid growth drive

Executives from LPL Financial, Cresset Partners hired for key roles.

Stock volatility remained low despite risk events
Stock volatility remained low despite risk events

Geopolitical tension has been managed well by the markets.

Fed minutes to provide signals on rate cuts
Fed minutes to provide signals on rate cuts

December cut is still a possiblity.

Trump's tariff talk roils markets, political leaders
Trump's tariff talk roils markets, political leaders

Canada, China among nations to react to president-elect's comments.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound