by Jason Simpkins
This is how Federal Reserve Vice Chairman Stanley Fischer answered a question about negative interest rates on Bloomberg TV this week… [emphasis mine.]
“We’ve learned that the central banks which are implementing them — there were four or five of them — basically think they’re quite successful and are staying with their approach, possibly with the exception of Japan. So we’re in a world where they seem to work. I think one of the most interesting developments I’ve seen in theory is a paper that says, yes, they work up to a certain point and then they become counterproductive.”
So right away Fischer has established that they “work.”
But what about people trying to save their money? People who don’t necessarily want to buy stocks, bonds, or real estate? What about savers?