Negative Interest Rates

Listen in pop-out player

The upside down world of negative interest rates - Sweden, Switzerland, Denmark, Japan, the eurozone and more recently Hungary have all introduced some form of negative interest rate policy. The theory is that by charging banks - instead of paying them - for their cash deposits, monetary authorities encourage the banks to lend and people to spend. That in turn should stimulate growth.

Manuela Saragosa hears from Eva Christiansen in Denmark who was among the first to get a loan where the bank was paying her to borrow money. Plus, the latest song about interest rates from Merle Hazard - otherwise known as Nashville money manager Jon Shayne. Also, we speak to former US Federal Reserve board member Randy Krozner, and Seijiro Takeshita, management and information professor at Japan's Shizuoka University.

(Photo: Merle Hazard and band. Credit: Jon Shayne)

Release date:

Available now

18 minutes

Last on

Wed 30 Mar 2016 15:06 GMT
BBC World Service except East and Southern Africa, West and Central Africa

Business Daily Podcast

MP3 Player.jpg

Download every programme.