If inflation is 2%, it still pays to have a bond at -1.75%.
This is not a hidden tax.
If negative interest rates are a good thing, why are European economies doing so poorly? They have very low economic expansion rates, high unemployment rates and lots of immigrants who will not assimilate.
If inflation is 2%, it still pays to have a bond at -1.75%.
Not sure how you get that
Negative rates are bonds with low positive rates sold at a premium to their value. There are lots of bonds available like treasuries for example that sell with positive rates and at fair prices. If European law allowed their banks to buy any bonds they would not be buying those with negative rates. Those banks are not worth anything at all.