I can’t help thinking about the Japanese real life deflationary experiment over the last 2 1⁄2 decades. It didn’t matter much when the Japanese move to ZIRP—zero interest rate policy. Borrowers didn’t take the money as they had few prospects on the business side of the fence and consumers were both over-levered and concerned about the future. So Japan has moved to NIRP—negative interest rate policy following in the footsteps of Europe. The ECB went deeper with the move yesterday. Now extending the bank’s largesse to buying corporate debt.
