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Banks are starting to pay negative interest on large deposits.
Chinese banks, with the government's blessing, pay negative real interest on deposits and so can lend to state-owned firms very cheaply.
Investors and consumers favour liquidity, but liquid assets offer low returns (all the more so today when many European government bonds pay negative rates).
Money-market funds, which invest in short-term debt, face similar problems, since they operate under rules that make it difficult to pay negative returns to investors.
In fact, at this point, inflation-protected U.S. bonds pay negative interest: investors are willing to pay America to hold their money.
And banks which want to deposit reserves with the Central Bank have to pay negative interest rates.
Similar(51)
He pays negative federal income taxes.
Modernists merely paid negative homage by breaking that tradition.
U's exalting of the generic over individual experience pays negative dividends.
(The E.C.B. eventually did that — indeed, it now pays negative interest rates, a historically unprecedented act. At the start of the crisis, though, it was very slow to act, and twice raised interest rates at catastrophic moments).
"Today, government bonds are paying negative interest rates.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com