What Effect Could a Negative Interest Rate Have Over an Economy?
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Hello.
- What effect would a negative interest rate have over an economy?
- Is it positive of negative effect? In addition, what prompts a central bank to reduce their interest rate to negative (-)?
- What do they hope to achieve by doing this?
- What effect would this have on the fixed deposits or borrowed money in such countries?
For example, the interest rate in Switzerland is currently negative.
These are vital questions and answers would be appreciated.
Thank you.
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