Negative Rates Alone Struggle to Lift Growth
Add up the market value of all of the government bonds trading at negative rates around the world, and it comes to more than $8 trillion, a testament to just how hard central bankers are pushing returns down in hopes of spurring people and businesses to spend.
But subtract inflation, and it becomes apparent how difficult that is. That number shrinks to $6.8 trillion, half of its level just a few months ago, according to data from J.P. Morgan Chase & Co.
It is perhaps the clearest sign of the intense difficulty that central banks are encountering in their extraordinary efforts to stimulate slumping economies—even as interest rates plunge to fresh lows.
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