I am a bit influenced by the situation in Europe.

Countries like Italy cannot inflate their way out of debt anymore. ECB, at least officially, is trying to keep inflation low. But negative interest rates would help the heavily indebted countries to ease their debt service burden.

(If such constellation of parameters is sustainable, IDK, but that debt isn't going anywhere.)

> But negative interest rates would help the heavily indebted countries to ease their debt service burden.

By penalizing their creditors, sure. That should teach them (and anyone else paying attention) not to lend to such countries in the future.

This gets even worse. As of today, no one is already willing to buy Italian, Greek etc. debt at the current low interest rates - but the ECB itself.

It reminds me of Baron Munchhausen pulling himself out of the swamp by his own hair.