The Great Debate on Negative Interest Rates

The video discusses the controversy surrounding interest rates from both investor and central bank perspectives. It delves into the impact of negative rates on profitability, particularly for European banks, and explores the divide between academic theories and practical realities. The video also examines how banks are adapting to negative rates, the role of regulations, and the effects on bank employees' compensation. Key figures and theories are highlighted, including the debate on the zero bound and the implications for equity prices and loan demand.

What strategies are banks employing in response to negative interest rates?

What feedback loop is created by the relationship between bank share prices and employee bonuses?

How do regulatory changes impact banker bonuses in the context of negative rates?