On: The Fed Wants to Test How Banks Would Handle Negative Rates

[mayukh]

> Presumably negative rates are a response to deflationary concerns. Under that scenario, cash under the bed would lose value faster than it would in a savings account

>As a borrower you are getting paid to borrow, thats a good incentive to go spend..

[AnimalMuppet → mayukh]

> Presumably negative rates are a response to deflationary concerns. Under that scenario, cash under the bed would lose value faster than it would in a savings account

False. In deflation, cash gains in value.