Zero or negative interest rate. Can this be interpreted to mean that an economy now values debt more than savings?

2016-06-25T21:36:08Z

As it seems to be saying that bank deposits are being discouraged due to no interest, and hence economic activity must be funded from debt.

2016-06-26T02:15:42Z

In other words I would borrow rather than work and save. Why work and save to buy plant and equipment when I could borrow for an indefinite term for zero or negative interest? If everyone does this, noone works, and the whole economy lives on growing debt. I see big problems with this. Surely devaluation and hyperinflation?

Anonymous2016-06-25T21:59:18Z

Favorite Answer

because the inflation targeting is not working.So it is wrong.