QuickTake: Central Banks Going Negative

The video discusses the increasing adoption of negative interest rates by central banks worldwide, including Japan, Europe, and the US, as a strategy to stimulate economic growth. It explains the impact of these rates on securities and government bonds, highlighting the challenges and risks, such as potential harm to bank profits and the possibility of a currency war. The rationale behind negative rates is to encourage lending and prevent deflation, but concerns remain about their effectiveness and unintended consequences.

In what ways do negative interest rates affect bank profits?

What concerns arise from the use of negative rates as a stimulus tool?