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World's longest negative rate experiment shows perversions

From Denmark's experiences, the logic of cheap money fuelling investment doesn't hold once rates drop below zero

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The only bright spot arising from negative rates seems to be the success with which Denmark's banks have withstood them. Danske Bank reported its biggest profit on record in 2015.

Copenhagen

WHEN interest rates are high, people borrow less and save more. When they're low, savings go down and borrowing goes up. But what happens when rates stay negative?

In Denmark, where rates have been below zero longer than anywhere else on the planet, the private sector is