An article in the Wall Street Journal in 2015 reported that the interest rate on five-year German

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An article in the Wall Street Journal in 2015 reported that the interest rate on five-year German government bonds had become negative: "The negative yield means investors are effectively paying the German state for holding its debt." The article quoted an investment analyst as saying: "The negative yield is not scaring investors away."
a. What caused the interest rate on German government bonds to become negative?
b. Why are investors willing to buy bonds with a negative interest rate?
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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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