European Union

More than one-fifth of the world’s total GDP is in countries which have imposed negative interest rates, including Japan, the EU, Denmark, Switzerland and Sweden.

Negative interest rates are spreading worldwide.

And yet negative interest rates – supposed to help economies recover – haven’t prevented Japan and Europe’s economies from absolutely going down the drain.

Nor have they even stimulated spending. As ValueWalk points out:

If there’s anything we’ve learned over the past twelve months it’s that Turkish President Recep Tayyip Erdogan is prepared to employ all manner of nefarious tactics in order to preserve his grip on power in Ankara.

Submitted by Raul Ilargi Meijer via The Automatic Earth blog,

Image: MarketWatch

Japan has joined the EU, Denmark, Switzerland and Sweden in imposing negative interest rates.

The Wall Street Journal notes:

TOKYO—Japan’s central bank stunned the markets Friday by setting the country’s first negative interest rates, in a desperate attempt to keep the economy from sliding back into the stagnation that has dogged it for much of the last two decades.

BBC writes:

The country is desperate to increase spending and investment.

 

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