Wednesday, May 15, 2013

ECB's Visco: negative deposit rates would be effective

What valuation model does one use in a negative interest rate environment?  Whichever methodology is used, asset prices MUST fall with interest rates below zero.  Check your equations.


http://uk.reuters.com/article/2013/05/13/uk-ecb-visco-depositrates-idUKBRE94C07E20130513

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