Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
Why Government Bonds Can Pay You Negative Interest
In this episode, Lucas and Luna tackle a counterintuitive twist in public finance: why investors sometimes pay the government for the privilege of lending it money. They explore how negative-yielding government bonds work, using Japan as the central case study — where the ten-year yield went below zero in 2016 and stayed there for years. The hosts break down the mechanics: how auctions clear at negative yields, who actually buys these bonds, and what it says about an economy's deeper problems — deflation, aging demographics, and central bank policy. Lucas also walks through the paradox…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.