Buiter: Banks to Overcome Social Taboo of Negative Rates

The transcript discusses the implications of negative interest rates, focusing on their impact on banks, cultural taboos, and public perception. It highlights the challenges faced by German banks in overcoming social taboos and the concerns of investors regarding capital generation. The discussion also compares the current financial environment with past crises, emphasizing differences in solvency and liquidity issues.

In what ways might Angela Merkel influence the acceptance of negative rates in Germany?

What concerns do investors have regarding capital generation in the context of negative rates?