Negative rates demonstrate shortcomings of currency

Distortionary effects of negative rates raise broader questions on design of money itself, writes Barry Topf

Digitally adapting to regulatory change

Negative short-term interest rates have become an important component of monetary policy, with their introduction in Sweden in 2009 later followed by the European Central Bank and Bank of Japan, among others. By some estimates, $17 trillion worth of bonds now have negative yields. And with President Trump calling on the Federal Reserve to adopt negative interest rates too, we must consider the longer-term, wider implications these policies can have.

As a former central banker and monetary

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