[Litmus2336]

The negative interest rates discourages holding money and encourages spending (and investment), which drives inflation. I do not believe negative interest rates destroy money, but I am not an expert. I cannot find any literature to prove or dispute that.

[samsonradu]

You're right, it does encourage spending and investment. However a part of the money does eventually go into negative interest rate assets (due to regulations etc.) and I believe that shrinks the money supply.

Not an expert either.