Expiring Cash & Negative Interest Rates

#Cash #InterestRates #HeiseSays

Our political leaders are being influenced by experts proposing expiring money or essentially negative interest rates, all in an effort to increase the velocity of money. Naturally, neither of these ideas is original so let’s look at a historic example of Keynesian spending and current demurrage with the “Miracle of Wörgl”.

References

https://au.finance.yahoo.com/news/kouk-cash-expiry-date-193613323.html

https://www.investopedia.com/terms/v/velocity.asp#:~:text=and%20the%20Economy-,What%20is%20Velocity%20of%20Money%3F,a%20given%20period%20of%20time.

https://mises.org/library/free-money-miracle