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Negative interest rates would undermine the economy’s resilience

 

 

 

 

After a decade of near-zero interest rates, discussion is turning to another radical monetary policy idea. Could or should interest rates go negative?

 

Japan, the eurozone, Switzerland and Sweden all have a negative rate in some form. President Trump has started to advocate a similar policy. If America did go down this route, about half of the world economy by GDP would have adopted a negative rate. So should Britain consider following the same path?

 

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