01 August 2016 at 12:49 GMT
As the number of corporate and government bonds with negative yields is ever increasing, economists' sentiment is also turning more and more negative. Many are worried about "the unhealthy interest rate environment". Not so, says Tyler Cowen. Instead, he argues that "[m]aybe it’s time we started thinking of negative securities as the equivalent of fire or earthquake insurance" for wealth. The amount of bonds with negative rates is quite small in relation to the growing wealth and negative rates [and this] could be seen as a sign of prosperity. Therefore, he concludes, "negative yields might just be a sign that you should be less scared rather than more."
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