So bad that, as the New York Times reports:
The European Central Bank cut its benchmark interest rate to a record low on Thursday and, in an unprecedented attempt to stimulate the euro zone economy, said it would begin charging interest on deposits held by the bank.The so-called negative deposit rate has never been tried on such a large scale and is a bid to push down the value of the euro and encourage banks to invest excess cash rather than hoarding it in central bank vaults.
There was a time when it seemed that the one thing governments could do, almost without trying, was inflate the currency. Now, even that seems difficult.
And so, the great contraction continues.
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