Deutsche Bank analyst Abhishek Singhania believes that there is no such thing as a zero lower bound when it comes to U.S. interest rates. In a new report, he discusses five reasons why sub-zero interest rates seem feasible and could prove to be the best stimulus tool in the future.

Precedent Set

The first argument that negative rates would work is the fact that several central banks, including the ECB, SNB, the Riksbank and Denmark’s Nationalbank, have already dipped their toes into negative-rate policy. Despite fears to the contrary, there has been no evidence of an increase in cash circulation in any of these regions.

The Evidence

Singhania lists…

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