Why Sweden ended Iits negative interest rate experiment
“Negative rates are the destruction of money, an economic aberration based on the mistakes of many central banks and some of their economists, who start with a wrong diagnosis: the idea that economic agents do not take more credit or invest more because they choose to save too much and that therefore saving must be penalized to stimulate the economy. Excuse the bluntness, but it is a ludicrous idea.”
USAGOLD note: The current chairman of the ECB recently asked: “Would we not be in a situation today with much higher unemployment and a far lower growth rate, and isn’t it true that ultimately we have done the right thing to act in favor of jobs and of growth rather than the protection of savers?” We fear that the question unambiguously reflects the current mindset among central bankers.
Repost from 1-8-2020