Should negative interest rates be introduced, would one expect substantial cash flows out of banks to somewhere else, or are there no other suitable places for folk to put money?
There have been many suggestions of counter measures by deposit holders such as foreign exchange, equities, precious metals, real estate and more recently crypto currencies. I am not clear if any of these are practical alternatives to having a bank account and suspect none of them are as if they were there would have been strong flights to them from the nations that have instituted such policies.
Perhaps I am misunderstanding what all of this means, but as I look at it, anyone who needs a bank account and that is everyone is some way or other is stuck with what ever policy the politicians mandate.
Can anyone see a scenario(s) in which a policy of negative interest rates would change anything?
Regards,