You&#x27;re mistakingly conflating negative interest rates and negative inflation (aka deflation). They are quite different; in fact, their correlation is quite strongly negative, i.e. increasing the interest rate tends to decrease the inflation rate.<p>On the topic of rescussitating the economy, funding public works projects would certainly have better long-term success than the current QE policy (i.e. the FED buying securities that never should have been legally issued in the first place).<p>Even better would be a modern debt jubilee, a la Steve Keen&#x27;s suggestion, in which all citizens are given a cash infusion that automatically pays down any outstanding debt, if present, or becomes a liquid asset if the citizen is debt free. This would reset the monetary system back to a state in which further investment can be financed within the system. The amount would of course need to be controlled so as to not induce immediate inflation, and restrictions on banks (e.g. Glass-Steagall) would need to be reinstated and enforced so as to delay the inevitable return to record high private debt levels.