How Government Bonds Pay Negative Interest

The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · Aug 19, 2026 · 11m · transcript

In this episode of The Fiscal Policy Podcast, Lucas and Luna explore the strange world of negative-yielding government bonds. They explain why investors would accept a guaranteed loss, tracing the phenomenon back to the European debt crisis and the European Central Bank's quantitative easing program. The conversation covers the mechanics of bond pricing, the role of central bank policy, and the broader implications for savers and governments. They also touch on the recent history of negative rates in Japan and Switzerland, and consider whether such policies could return. A…