Comments on: Sweden: negative interest rates and quantitative easing http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-56704 Edward Harrison Mon, 06 Jul 2009 07:29:00 +0000 http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-56704 It means employment measures. In German, it would be called Arbeitsbeschaffungsmassnahmen. That's a mouthful. It's a bit like Roosevelt's works measures to employee people laid off in 'something.' It means employment measures. In German, it would be called Arbeitsbeschaffungsmassnahmen. That’s a mouthful.

It’s a bit like Roosevelt’s works measures to employee people laid off in ‘something.’

]]> By: kynikos http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-56700 kynikos Mon, 06 Jul 2009 01:25:00 +0000 http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-56700 I like Sweden's other programs such as "AMS-åtgärder" Since Edward knows Swedish, could he explain what is "AMS-åtgärder?" I like Sweden’s other programs such as “AMS-åtgärder” Since Edward knows Swedish, could he explain what is “AMS-åtgärder?”

]]> By: Edward Harrison http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-56698 Edward Harrison Sun, 05 Jul 2009 15:11:00 +0000 http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-56698 Stevie, thanks or catching 'borrowers' when I meant 'savers.' My understanding is the negative rate isn't really an interest rate banks receive bu rather one they must pay for depositing money t the Riksbank. That incents them to not have excess reserves on deposit. As for the repo rate at 0.25%, we will see more spread for banks as a result. The rates won't be passed through 100%. It's a fat spread way of re-capitalising. Stevie, thanks or catching ‘borrowers’ when I meant ‘savers.’ My understanding is the negative rate isn’t really an interest rate banks receive bu rather one they must pay for depositing money t the Riksbank. That incents them to not have excess reserves on deposit.

As for the repo rate at 0.25%, we will see more spread for banks as a result. The rates won’t be passed through 100%. It’s a fat spread way of re-capitalising.

]]> By: Stevie b. http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-56697 Stevie b. Sun, 05 Jul 2009 13:00:00 +0000 http://www.creditwritedowns.com/2009/07/sweden-negative-interest-rates-and-quantitative-easing.html#comment-56697 Ed - a) "Punishing borrowers by lowering interest rates to zero and printing money is not going to solve the problem ." I may be misunderstanding (again), but do you mean punishing "savers" as opposed to borrowers? b) "we will start penalizing banks for not lending by charging them 0.25% for holding deposits at the Riksbank." The fog lifts - I got it into my head that the banks were going to charge their (retail) customers for the temerity of having a deposit with them. Is this what will naturally follow if the negative rate charged by the CB rises? Ed – a) “Punishing borrowers by lowering interest rates to zero and printing money is not going to solve the problem .” I may be misunderstanding (again), but do you mean punishing “savers” as opposed to borrowers?

b) “we will start penalizing banks for not lending by charging them 0.25% for holding deposits at the Riksbank.” The fog lifts – I got it into my head that the banks were going to charge their (retail) customers for the temerity of having a deposit with them. Is this what will naturally follow if the negative rate charged by the CB rises?

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