# Think Tank > Austrian Economics / Economic Theory >  Negative Interest Rates ---how?

## LibForestPaul

Swiss, Sweden now have negative interest rates for some time. What is happening to Swiss and Swedes day to day? Is their capital flight out or into these countries? Is their flight to gold? What of the standard of living for individuals, especially under 30?
Hard to grasp...

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## r3volution 3.0

> Is their capital flight out or into these countries?


I couldn't say what's going on there right now, but Switzerland's negative rates a few years ago were the result of massive capital inflows. Risk off, sell everything, put in the bank; with enough demand for bank deposits, banks can charge interest rather than paying it. It sounds ludicrous, but actually makes sense for large enough accounts. Withdrawing $1 billion in cash, transporting it, safely storing it, etc, would cost a lot more than -0.1% APR for a month.

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## oyarde

It is true . I will store your gold , weapons and ammo for a fee .

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