Why can't interest rates be negative?

As the threat of deflation looms, central banks have struggled with the consequences of setting interest rates at zero. But there are ways to overcome this hurdle.

Overnight, the European Central Bank once again opted for timidity, with interest rates remaining unchanged. The scale of the deflationary threat Europe faces is awesome. However, with no appetite to engage in quantitative easing, I fear that the bank is not willing to do 'whatever it takes' to save the single currency, as someone once said.

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