And eurozone banks down 41% since ECB introduced negative interest rates, notes
That is from @RobinWigg. The Japanese market has not responded positively either.
Of course negative interest rates, while intended as a form of stimulus, or currency depreciation, are also a tax on financial intermediation. Negative interest rates, even if you agree with them in principle, are also a sign that more straightforward measures are politically impossible.
Here is Landon Thomas Jr. on negative rates in Sweden (NYT): “…many investors saw the rate cut as smacking of desperation and the latest sign that global central bankers are moving toward a round of competitive devaluations — also known as currency wars — as a way to stimulate their economies.”
I don’t see negative rates as the main problem today, but it’s getting harder to see them as a potential remedy. They’re a sign that economies are trying to solve their core problems on the cheap.
Addendum: Here is Neil Irwin at NYT.