From Kenneth Garbade and Jamie McAndrews in a nice Liberty Street Economics blog post
- Certified check. Go to the bank, tell the bank to write you a $10,000 certified check. Put it in your sock drawer. (More: "Certified checks, which are liabilities of the certifying banks rather than individual depositors, might become a popular means of payment, as well as an attractive store of value, because they can be made payable to order and can be endorsed to subsequent payees.")
Or, inspired by that:
- Don't cash checks. Every 90 days, call up, say you lost the check, ask them to reissue it.
So, the project will mean changing the rules and laws governing checks, going back hundreds of years.
An earlier post by Todd Keister:
- Money market mutual funds.
Currently money market funds promise fixed value, and pay positive interest. They are not set up to charge negative interest, or to allow capital losses. Maybe they should -- I've argued for floating NAV -- but they don't. The Fed kept the 0.25% rate on reserves precisely so banks and money market funds didn't have to reinvent themselves in ways that allow capital losses or negative rates.
Miles Kimball has also been writing in favor of negative nominal rates and thinking about the zero bound. One post is here.