Reconsidering Interest and Lending in a World with Negative Interest Rates

Abstract

Interest rates have been around since the times of the Bible. In fact, the Bible says quite a bit about interest. Interest rates have been the focus of serious academic study since the Great Depression. Embedded in both the Bible and the academic study of interest has been the implied assumption that interest rates are positive. This paper considers biblical and academic interpretations of interest and reflects on the current interest rate environment where negative interest rates are becoming more prevalent.