Cyprus- Just in case you thought negative interest rates help an economy

Many have proposed negative interest rates as further ‘easing’ to help the economy.(too many, actually)

The proposed deposit tax in Cypress is functionally a one time negative interest rate. So maybe if they made it annual- just like the negative interest rates proposed elsewhere- it would help the economy?

So as previously discussed, I still see it in a spectrum. Positive rates are a govt subsidy and negative rates a tax. And so the Fed’s rate cuts and QE removed the prior subsidy, for example.