Lessons for Mario Draghi from a land of sub-zero interest rates

Frankfurt

UNTIL not so long ago, the idea of sub-zero interest rates was about as far-fetched as the prospect of a brash real estate tycoon running for US president. These days, the discussion is whether a deposit rate below minus 0.20 per cent is a good trump card to play when dealing with Europe's sclerotic economy.

The European Central Bank (ECB) meets on Thursday for yet another discussion on how to stimulate growth. Rate cuts are improbable - ECB board member Benoit Coeure recently described the current level as "the effective lower bound". Shoul…