04/18/2015 - Financial Repression Explained: It’s about Macro Prudential Policies to Control and Reduce Government Debt
WSJ article highlights how as interest rate benchmarks go negative, banks may be paying borrowers .. “Negative interest rates in Europe have created a previously inconceivable problem for some banks: They may soon have to pay interest to customers who borrow from them .. The novel problem is just one of many challenges caused by negative interest rates. All over Europe, banks are being forced to rebuild computer programs, update legal documents and redo spreadsheets to account for negative rates . Banks, hoping to avoid the expense of having to pay their borrowers, are turning to central banks for guidance. But what they are hearing is less than comforting.” .. it’s financial repression.
