26 April 2016

Econ 102 Didn't Tell Me This Could Happen

When I took macroeconomics in college, we assumed that interest rates would always be positive. Who would buy a government bond with a negative interest rate, we thought?  Obviously that couldn't happen.

Except, it has, in both Japan and Germany, both of which are respectable industrialized countries who financial policies are not run by lunatics.

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