Rosenberg: Negative Side Effects of Negative Rates

The video discusses the concept of negative interest rates, their impact on the banking system, and the unintended consequences they may have, such as focusing on currency rather than stimulating domestic demand. It also explores the prolonged effects of negative rates and the shift towards quantitative easing (QE) as seen in Europe, while debating the future direction of monetary policy in Japan.

What are the limitations of using currency to stimulate the economy under negative interest rate policies?

What alternative monetary policies might central banks consider instead of further negative interest rates?