×
By lending at zero interest rates, banks can easily trigger overinvestment, causing the boom and bust cycles that have put economies in their current straits (source: dpa)

Zero interest rates put savings, political reform at risk

The United States Federal Reserve made news last week by raising its benchmark interest rate. However, even if the Fed continues with modest hikes, globally, rates close to and even below zero are here to stay, especially in the eurozone. Some observers explain this unusual state of affairs by citing economic trends (long-term stagnation), while others blame monetary policy. Whatever the reason, the consequences for investment allocation, savings and political reform will be negative. European economies may end up in permanent sclerosis.

In the wake of the ‘Great Recession’ central banks around the world brought their policy rates close to zero, where they have remained for nearly sev...

Unlock the report
8.95 EUR
 
Secure, instant payment by credit card
Dr. Michael Wohlgemuth
About 2 trillion euros worth of short-term government bonds are now priced with negative interest rates
read more about it in the report
Who will benefit?
  • Report is targeted to the decision makers in cross country manufacturing – suppliers, manufacturers, logistics.
  • Also considered useful for the administrative university facilities, to better understand the possibe effects of current decisions.
By clicking "I Agree" below, you acknowledge that you accept our Privacy Policy and Terms and Conditions. Feel free to check out our policies anytime for more information.
I agree