Ever heard of a situation where you have to pay interest to a bank for keeping your money in a savings account rather than the bank pay you interest? The first time i heard such a thing was at IIM, Kozhikode, where my finance prof. (a goan), told us that in pre 1961 Goa, one had to pay interest to bank for their deposits.
Well, we have a more recent example in the modern world. Seems that the Swedes have decided to follow the pre liberated Goan (portugese) system. Their central bank has cut repo rate by 25 basis points bringing the deposit rate to a whopping MINUS 0.25%.
It would be interesting to see the consequences.
