What's Wrong With Negative Interest Rates?

The video discusses the concept of negative interest rates, highlighting critiques by Stiglitz and others on the inadequacies of current economic models that fail to account for banks. It explores the global application of negative rates in countries like Denmark and Switzerland, emphasizing their impact on financial markets. The debate on pushing investors towards riskier assets and the lack of viable alternatives is also covered. Additionally, the video analyzes the effects of quantitative easing in the US, questioning its effectiveness in stimulating economic growth.

What is the main concern regarding the use of negative interest rates according to the discussion?

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How do negative interest rates affect investor behavior in terms of asset allocation?

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What critique does Stiglitz have regarding the models used by central banks?

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What examples are given to illustrate the effectiveness of negative rates in certain countries?

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What alternative strategies are being discussed in relation to pushing people into riskier assets?

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