“Thus, the aim of this paper is to give a concise review of the various strands of the literature dealing with negative interest rates from past to present. We show that, besides its anarchistic origins, there are two orthodox strands of research that show the potentially beneficial effects of negative interest rates, but have so far been unconnected in the literature. By highlighting the diverse origins of the proposal, we hope to convey the message that negative interest rates are not the ‘idée fixe’ of a monetary crank, but a serious policy proposal and that the issue should be further examined.”
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