Negative Interest Rates: A curious phenomenon
Datta, Sugata Kumar
Negative Interest Rates: A curious phenomenon - - 16-19 p.
Basic economics dictate that all factors of production have
a cost attached to them - labour, land, capital and money.
Accordingly, we pay wages and rent and interest to compensate these factors for their contribution to the process of production. Interest is paid on the money which is borrowed. But, can we have a situation when interest is actually ‘received’ on money borrowed, rather than being ‘paid’?
Negative Interest Rates: A curious phenomenon - - 16-19 p.
Basic economics dictate that all factors of production have
a cost attached to them - labour, land, capital and money.
Accordingly, we pay wages and rent and interest to compensate these factors for their contribution to the process of production. Interest is paid on the money which is borrowed. But, can we have a situation when interest is actually ‘received’ on money borrowed, rather than being ‘paid’?