Rogoff: Banks Make Money Off Low Rates in Long-Run

The video discusses the concept of negative interest rates, focusing on the zero bound and its implications for the banking sector. It highlights the long-term nature of implementing effective negative rates, considering legal and tax issues. The discussion includes the challenges faced by banks like Deutsche Bank and the theoretical perspectives of economists like Ken Rogoff. The feasibility of pushing negative rates further is questioned, with current obstacles and financial firm resistance noted. The overall message is that while negative rates are a long-term proposition, they require careful consideration and planning.

In what ways does the author suggest that banks can profit from negative interest rates?

What does the author imply about the long-term nature of negative interest rates?