Report
Why are negative long-term interest rates a problem?
Negative long-term interest rates are shocking, but we have to understand that the only problem with negative interest rates is the existence of financial assets (banknotes, term bank deposits) that yield zero. If these financial assets did not exist, interest rates could be negative without any difficulty. The risk is then a massive switch of savings to banknotes and sight deposits, which makes it much more difficult to finance the economy, and which can be seen in almost all countries where the long-term interest rate is negative.
Provider
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
Other Reports from Natixis
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.