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Economists Fall Out of Favor in a Negative-Rate Test Case

From bnnbloomberg.ca

In the country that’s had negative interest rates longer than anywhere else on Earth, economists are going through a bit of a rough patch. Since Denmark introduced subzero rates in mid-2012, citizens have struggled to get their heads around a world in which savers are punished, borrowers are rewarded and the basic laws of risk-return feel like ancient mythology. “People just don’t understand negative rates,” said Jes Roerholt Asmussen, the chief economist at Handelsbanken in Copenhagen. Trying to explain the incomprehensible -- and make predictions that people take seriously -- is proving increasingly difficult, ... (full story)

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  • Category: Fundamental Analysis