Zero % rates and the Swiss 1000 franc bank notes

28 February 2015

 

The ultimate aim of quantitative easing is to ‘force’ banks to lend money and encourage investors and consumers to spend in order to keep the economy moving and avoid deflation. One of the options available is for a central bank to reduce interest rates to zero, or in some cases below zero, to penalise the holders of cash and to lower the currency to generate lending, spending and growth. But...

read full story