have you found an intuitive example of a transactional flow/loop that works with negative interest rates? still too abstract for me
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you're thinking too micro, not enough macro. it's supply/demand, investment managers have $ allocation and can't buy cash, so..
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I don't understand how that couples to negative interest rates. NPV of demand/supply or something?
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interest rate = price of borrowing $ over time. sellers = money mgrs. buyers = investment opps. cur mkt clearing price < 0%
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before now, people assumed that supply curve = 0 at r = 0%. turns out w/ professional money management, that's not the case
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thanks, now I know enough to successfully pretend to understand this so long as everybody has had a couple of drinks
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MiloMinderbendernomics
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