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Sure, interest rates are negative, but so are some prices, and when you look around, they're everywhere

  • Written by Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National University
Sure, interest rates are negative, but so are some prices, and when you look around, they're everywherePushkin/Shutterstock

On December 10, it finally happened. Instead of demanding an interest payment from the government in return for lending it money, a group of investors offered to pay the government in order to lend it money.

Naturally enough, the offer was accepted.

The government needed A$1.5 billion which it promised to repay on March 26.

It...

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