pls. how is zero inflation a bad thing?
can anyone explain me the negative interest rates of japan? does it mean you cant keep money in a bank account? or is it something else?
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You pay a fee to store money rather than get paid interest
Modern economies only work if people are investing and spending money. A little inflation encourages people to use their money today rather than save it as cash
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would i get money for borrowing and doing nothing? (since the rates are negative)
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Negative rates mean no one will lend to you, since they'd lose money doing so. That's why it's bad for an economy, where businesses are started (and maintained through downturns) by loans.
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You have that backwards.
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There is no forwards and backwards in the economy. It all feeds back and forward.
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This a bot. I won't be fooled again
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what would happen if people were to withdraw and sit on the hard cash? will the planes start falling?
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For businesses itd be a nightmare a logistical nightmare handling billions of dollars in paper currency.
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bigger denomination notes. bonds maybe
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The economy stagnates because money isn't moving.
The concern isn't whether you're keeping it in banks or not, it's whether you're actually doing something useful with the money. The whole point of negative interest rates is to get people to take their money out of the bank and start investing or spending it.
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Didn't know this was a thing, but my guess is it forces people to not sit on cash making them invest which means stimulating the economy.
The japs are proper people, so their banks probably don't make much money on people bouncing checks, overdrawing or taking out high interest loans that they shouldn't be touching.
Talking out my butt, have no idea why.
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but you can literally sit on the literal cash. how would literal cash disappear when inflation is zero?
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If everyone decides to start sitting on cash because of zero inflation then you go into deflation
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is this the utopia communism promised?
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Unless you own any debt. Hence why there was an economic disaster caused by deflation every 5-10 years in early American history
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Bank needs to make some profit. You can sit on cash you got under the mattress. But if you got someone else holding it for you they can skim off the top.
How that works with a federal reserve idk, talking out my butt here.
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Had to Google it. Did they end it just a few weeks ago?
https://global.beyondbullsandbears.com/2024/03/28/japan-ends-its-negative-interest-rate-policy/#:~:text=The%20Bank%20of%20Japan%20(BoJ,confidence%20in%20their%20deflation%20fight.
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i got hairy legs that turn blonde in the sun and the kids would reach into the pool and rub my leg down so it was straight and watch the hair come back up again. so i learned about roaches and kids jumping on my lap. and I loved kids jumping on my lap.
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Snappy, what's goin on, big guy?
Current hyperfixation:
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Negative interest rates disincentivizes holding cash by making money practically free. Banks are penalized for parking money in the BoJ so they just lend to whomever.
Zero inflation might look on paper but it a symptom of stagnation. In a healthy economy business take out loans to expand or buy equipment. This creates an downstream effect of creating demand. The cost of goods goes up and so does labor. The average worker is more productive with the new equipment and is more valuable. Ideally, this means raises or higher initial wages. More wages means more consooming so money is pumped back into the system.
The """"problem"""" with the Japanese, and Asian cultures in general, is that they prefer to save money for a rainy day rather than just spend it immediately. Stimulus checks turbocharged America but mostly went into savings in Japan
What you should take away here is "hoodrich" minorities are the reason why American consumerism remains strong. Black people spend money as soon as they get it and thus drive inflation. Japan doesn't have as many people with that mindset. Japan must import migrants if it is to survive
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