SMU Adjunct Faculty Dr Larry Haverkamp highlighted the latest move by Japan’s Central Bank to adopt negative interest rates. He explained how the negative rates work and discussed the feasibility of such a move. Dr Haverkamp stated that negative rates and a pay-to save strategy are embedded in the economies of Sweden, Denmark and Switzerland, as well as the European Central Bank, which he noted that it is a carrot-and-stick approach that is intended to get banks to lend and companies to spend. He also shared his views on whether Singapore would adopt the same move and the implications it has for Singaporeans if this were to happen.