Tuesday, July 27

“Kuroda’s Bazooka”: What Japan Has Achieved by Keeping Interest Rates Below Zero Over the Past Years


  • Cecilia Barría
  • BBC World News

people in front of a bank

Image source, Such

Caption,

There are three countries that still maintain an interest rate below zero: Denmark, Switzerland and Japan.

When a country has a low interest rate, it is the worst time to save.

And that’s precisely the idea: getting consumers to spend and businesses to invest to stimulate economic growth.

After the financial crisis of 2008, many countries carried their rates at historic lows ushering in an era of “cheap money” in developed economies.

Some went even further and chose to set negative interest rates.


www.bbc.com

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