What is negative interest rates and what are the effects of negative interest rates on the economy? To get started, check up this news on how a Danish bank is paying borrowers to loan out their money. Doesn’t make sense? That’s what the world is heading towards now. Let’s take a look at the interest rate trends in 2019. This would probably be a good summary for the uninitiated.
1. Fed Cutting Rates Source: https://fred.stlouisfed.org/series/FEDFUNDSThe fed has cut interest rates 3 times in 2019. From the last financial crisis in 2009, we have lived in a period of ultra-low interest rate environment where the money supply is cheap and easily accessible. Debt piles up and business expands on cheap liquidity. The stock market rallies and investors rejoice.
Interest rates started rising in 2016 to 2019 before plateauing at 2.5%. The reason why rates are increased is
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