Japan's Negative Interest Rate Are Working!
Feb 25, 2016 16:22:08 GMT
paisley and mzgarden like this
Post by Ozarks Tom on Feb 25, 2016 16:22:08 GMT
The theory behind negative interest rates is to encourage retail spending, thereby boosting the economy. In Japan, their program is working great so far. The Japanese are spending on moderately big ticket items - safes.
Another great theory on how to force people to do things they wouldn't otherwise do backfires on the economic geniuses running our economies.
Negative interest rates mean customers effectively pay a fee for parking cash in banks, so Japanese citizens are beginning to hoard yen, according to the Wall Street Journal, and they need somewhere to put it.
Sales of safes have doubled from the same period a year earlier at chain hardware store, Shimachu, according to the Journal. The chain has already sold out of one model worth $700. Others savers are considering more unconventional storage spaces.
fortune.com/2016/02/23/japans-negative-interest-rate-driving-up-safe-sales/
Another great theory on how to force people to do things they wouldn't otherwise do backfires on the economic geniuses running our economies.
Negative interest rates mean customers effectively pay a fee for parking cash in banks, so Japanese citizens are beginning to hoard yen, according to the Wall Street Journal, and they need somewhere to put it.
Sales of safes have doubled from the same period a year earlier at chain hardware store, Shimachu, according to the Journal. The chain has already sold out of one model worth $700. Others savers are considering more unconventional storage spaces.
fortune.com/2016/02/23/japans-negative-interest-rate-driving-up-safe-sales/
