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by fujiters 2488 days ago
I'm a bit surprised that negative nominal interest rates are a thing. If you print enough money, inflation starts to rise. Why not print money such that you can still provide a positive nominal interest rate so people don't start bank runs and stuff money in mattresses? True, the real return would be negative, but that would be the case either way.
1 comments

Because is just doesnt work. Since 2000 the amount of € (M3) has tripled while the economy grew by 50%. The money is just parked and not circulating in the economy. This is why it does not contribute to inflation. There are no good investments to be found, so adding money just adds to the sea of parked money.