If central banks weren't setting the price of credit by fiat, what would a "market" risk free rate be? Have any economists tried to answer this question?
Edit: not sure why I'm being downvoted for this...?
4,555 karma · joined December 5, 2016
Edit: not sure why I'm being downvoted for this...?
Short of physically replacing the drive, I don't think there would be much you could do, in that particular circumstance.
TFA suggests this is due to structural factors--institutions that are required by law to own AA/AAA bonds. Is this some deficiency in the law or corporate governance, that cash in this circumstance isn't considered a substitute for a negative-yield bond? Its net present value would be greater. I can't imagine a scenario in which you would come out financially ahead from owning a negative yielding bond instead of cash.
[1] https://www.cnbc.com/2019/08/07/bizarro-bonds-negative-yield...
hacked?
WTF