Citicorp’s chief economist, a technocrat named Willem Buiter, thinks the US needs much lower interest rates to push the economy out of the doldrums. He thinks negative interest rates around -6% would do the job. But there’s one condition: For his plan to work, he says, the government must abolish cash.
For all it’s worth, the aim is to encourage investment rather than hoarding. I don’t see a practical difference from inflation, except for the utter honesty in stealing money that makes one’s head hurt. Not even the worst governments would try it; there’s too much pain for too little gain.
they just need money to circulate over and over. but with “brute force” it is not the way to do it!
thanks god we have crypto money
Sweden, Denmark, and Switzerland are all experimenting with it already: http://www.telegraph.co.uk/finance/economics/11895084/How-Swedens-negative-interest-rates-experiment-has-turned-economics-on-its-head.html. It’s a radical form of monetary policy that would have been unthinkable a couple decades ago.