There's nothing wrong with central banks paying negative interest rates on bank reserves. There is something very wrong with a monetary regime that causes equilibrium nominal interest rates to end up negative. That's one way of thinking about my recent Econlog post.
Yahoo has an interesting article on negative interest rates:
"Rising life expectancy increases desired saving while new technologies are capital-saving and are becoming cheaper - and thus reduce ex ante demand for investment," Fels writes. "The resulting savings glut tends to push the 'natural' rate of interest lower and lower."
The disinflationary