{"id":422896,"date":"2020-05-06T13:04:28","date_gmt":"2020-05-06T13:04:28","guid":{"rendered":"https:\/\/uniquehot.com\/?p=422896"},"modified":"2020-05-06T13:04:28","modified_gmt":"2020-05-06T13:04:28","slug":"bullish-for-crypto-imf-economist-calls-for-negative-interest-rates","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/bullish-for-crypto-imf-economist-calls-for-negative-interest-rates\/","title":{"rendered":"Bullish For Crypto: Ex-IMF Economist Calls For Negative Interest Rates"},"content":{"rendered":"
Former IMF Chief Economist, Kenneth Rogoff<\/a> states central banks should consider negative interest rates<\/a>. His words, in effect, greenlight crypto assets, which stand to benefit should the Federal Reserve decide to go this route.<\/p>\n As central banks run out of options to stimulate their respective economies, talk of negative interest rates<\/a> is starting to make the rounds.<\/p>\n Negative interest rates punish savers and reward borrowers, an entirely unconventional and backward concept. With that, the cryptocurrency market should gain, as savers look elsewhere for better deals.<\/p>\n All the same, Rogoff<\/a> makes the claim that should a rapid recovery fail to happen, negative rates make sense from the perspective of lessening the damage.<\/p>\n The argument put forward claims that between government-backed stimulus and negative interest rates, the latter works more conventionally. Thus, making it the preferred option.<\/p>\n “If done correctly \u2013 and recent empirical evidence increasingly supports this \u2013 negative rates would operate similarly to normal monetary policy, boosting aggregate demand and raising employment.”<\/p><\/blockquote>\n He then goes on to say making this policy effective would require discouraging largescale cash hoarding. This he also applies to entities and industries known to be big hoarders of cash, including pension funds and insurance companies.<\/p>\n “With large-scale cash hoarding taken off the table, the issue of pass-through of negative rates to bank depositors \u2013 the most sensible concern \u2013 would be eliminated.”<\/p><\/blockquote>\n However, at present, crypto interest rates can be up to 8.6%<\/a> for savers. As well as that, passive gains are also possible through crypto asset staking. According to stakingrewards.com<\/a>, this can be as high as 38%. Or 15% for more established projects such as Icon.<\/p>\nCrypto Assets Could see a Boom off the Back of Negative Rates<\/h2>\n