The bars show the total value of negative rate government bonds in various countries.
You can see that Japan has the most negative rate bonds. According to The Wall Street Journal, more than 70% of Japan’s government bonds have negative rates.
The Bank of Japan (BOJ) introduced negative rates in January in an effort to jumpstart the country’s economy. Japan’s economy hasn’t grown in two decades. Its government is desperate enough to try anything.
So far, the experiment is a huge flop.
As we recently explained, folks in Japan are not spending more money. They’re hoarding cash at home. That’s because negative rates “tax” money in your bank account, but they can’t tax cash sitting in a safe or under your mattress.