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2019 has seen an unprecedented move towards lower interest rates around the world.
Traditional economists would see that and assume there was some major financial crisis central banks were desperately fighting. Interest rates in Australia and New Zealand were cut to record lows, beyond even the 2008 “great recession” levels.
Meanwhile, Japan has continued to break its own record for the longest period with negative rates.
More and more central banks are at least flirting with the idea of negative rates, even as an increasing mass of analysts and economists come forward to say they don’t work.
It’s Not Just the Central Banks
What’s been unique lately is that this policy is starting to go beyond the banking industry.
Perpetually low rates negatively impact bank profits, who rely on interest from their borrowers to make money.
Many major banks have come close to teetering on potential inso...
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