Negative interest rates are becoming the new normal

Strategies tried by countries such as Denmark are embraced by giants of the world economy.

CENTRAL bankers have long talked about the problem of the "zero lower bound." That's the idea that interest rates can't be set below zero. It is an important concept because it would mean there is a limit on how much an economy can be stimulated using monetary policy.

The last few years have exposed a problem with this idea. It now looks as if the zero lower bound isn't a bound. And it isn't at zero.


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