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Negative Interest Rates Mark New Tool for Central Bank

Negative interest rates are the new tool in the central banks' collections of monetary policies. They are being tried out by central banks in Japan and Europe, and might come to the United States. Conventional interest rates reward people who deposit money by paying them additional money, or interest. With negative interest rates, people deposit money, and the bank returns a bit less later on. It is like paying rent to store money. Advocates of the unconventional policy say it is...

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