Last week, the yield on two-year German bonds fell to minus 0.11 per cent. Such a yield means that, instead of investors putting their money safely in bonds and earning a modest return, they were willing to lose 0.11 per cent of their capital – essentially, paying a fee to the German government – simply to ensure they didn’t lose any more.
At the same time, the eurozone slipped into deflation, with prices on ordinary...
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