When interest rates turn negative

By KESLS RAM -
When savers deposit money in a bank, they postpone consumption. When borrowers take out loans they pull future consumption forward. Banks facilitate this by the magic of interest. When they make loans and charge interest, or pay interest on deposits, they are really putting a price on time itself. But when interest rates are zero, or even negative, this trick becomes much harder to pull off.

https://www.economist.com/special-report/2021/05/06/when-interest-rates-turn-negative


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Best regards
Seetha Ram

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