Imagine waking up in the morning and a notice from the bank flashes on your phone screen: "Dear customer, I'm sorry to inform you that now that your deposit rate has been adjusted to zero, you will no longer receive any interest. This seems to be a plot that only appears in a futuristic film, but in fact, it is a real policy proposed by economist Mr. Ren Zeping.
Zero interest rate, is it a blessing or a curse?
Mr. Ren's original intention of proposing zero interest rate is to let everyone's money no longer lie in the bank and sleep, but use it for consumption or investment to add fuel to economic growth. After all, if you know that you can't earn interest on your deposit, you might consider buying something or investing it to get your money moving.
International cases
In fact, several countries in the world have implemented policies of zero or even negative interest rates. For example, the United States lowered interest rates to near zero during the 2008 financial crisis, the European Central Bank also implemented a negative interest rate policy, and Japan has been in a low interest rate environment since the late 1990s. Countries such as Sweden, Switzerland and Denmark have also experimented with negative interest rates. The aim of these policies is to boost economic growth by reducing borrowing costs to stimulate consumption and investment.
What do you think?
Of course, as soon as this proposal came out, it blew up on the Internet. There are concerns, "What about my pension?" Indeed, this is bad news for those who live on interest. Everyone is thinking, if there is really no interest, then what is the point of putting money in the bank?
What about banks?
Banks are also having a headache, and their traditional ways of making money are being challenged. They may have to find ways to attract customers, such as raising service fees or developing new financial products. This is both a challenge and an opportunity for banks.
What do the experts say?
Experts also have different views on this zero-interest rate policy. There are concerns about whether this will create an asset bubble or make financial markets more volatile. Imagine how chaotic the market would be if everyone took their money out of the bank to buy a house or trade in stocks.
Going back to the very beginning of the scenario, what would you do if you did wake up one day and find that the deposit rate had gone to zero? There is no standard answer to this question, because everyone's situation is different. But one thing is for sure, if this policy is implemented, it will change the financial life of each of us, and it will also change the way the economy as a whole runs.
Times are full of uncertainties, and each of us needs not only the wisdom of policymakers, but also our own understanding and adaptation. Each of us is a participant and an observer in this economic experiment. Let's wait and see what the end result of this policy vision will be.