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Negative Interest Rates and the War Against Cash

  • Brendan Brown
Chapter

Abstract

This chapter advances a strong critique of negative interest rates as a non-conventional monetary tool. Even at the just moderately sub-zero levels of recent years (in Japan and Europe), they have fuelled asset inflation whilst making still more remote the prospect of sound money. Some advocates of 2% recommend driving interest rates further into negative territory; this journey would require an intensification of the war against cash. The opposite view is advanced here. First, governments abuse negative rates as a means of camouflaged inflation taxation. Second, the war against cash is full of danger—most particularly it depends on an unholy alliance between Big Tech, Big Banks, and Big Government. Third, it displaces monetary base even further from the pivot of the monetary system, meaning that interest rate manipulation is re-enforced.

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Brendan Brown
    • 1
  1. 1.Economic ResearchMUFGLondonUK

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