“Radical monetary policy begets more radical policy,” says James Grant. “It seems to me at some point markets or voters will put a stop to this.”
European Central Bank President Mario Draghi surprised many last week by reducing the interest rate on deposits to a negative level (−10 bps). So, we asked readers whether negative rates would discourage banks from keeping deposits at the ECB or whether banks might prefer to pay a premium for safety.
Can anyone reasonably expect to earn a 5% real return with acceptable risk in today’s economic environment?
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