by Jason Simpkins
Outsider Club
Six of the world’s central banks (Europe, Denmark, Sweden, Switzerland, Japan, and Hungary) representing 29 countries have taken interest rates negative. They range from -0.05% in Hungary to -1.25% basis points in Sweden.
As a result, other countries, plagued by the same low commodities prices and a soft global economy, are now under growing pressure to take the same action.
Defend your currency and suffer the consequences, or devalue it and play catch up. In many cases the decision is difficult, but seemingly inevitable.
This is what you call a race to the bottom — various countries all jockeying to devalue their currencies to maintain growth.