8 min

Global Economy Struggles With Negative Rates YaleGlobal

    • Social Sciences

To sustain economic growth, central banks in advanced economies have steadily reduced interest rates, encouraging consumers to spend. Negative rates are harmful for pension funds and the retired who rely on interest income. US reliance on negative rates could destabilize the banking system, and new ways to spur economic activity are needed.

Article written by Will Hickey and read by Zacharia Postle.

To sustain economic growth, central banks in advanced economies have steadily reduced interest rates, encouraging consumers to spend. Negative rates are harmful for pension funds and the retired who rely on interest income. US reliance on negative rates could destabilize the banking system, and new ways to spur economic activity are needed.

Article written by Will Hickey and read by Zacharia Postle.

8 min

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