Can interest rate go negative?

Discussion in 'Economics' started by turkeyneck, Oct 19, 2008.

  1. Daal

    Daal

    I saw a fed funds contract with an ask above 100 sometime ago
     
    #11     Oct 20, 2008
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  2. nazzdack

    nazzdack

    1) Did the best-bid tell the "ask" to eff-off? :cool:
    2) A negative interest rate can be thought of as a "storage charge" for money. :)
    3) Negative interest rates can occur when borrowers want to receive "special collateral" from repo transactions. :eek:
     
    #12     Oct 20, 2008
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