So, the otherwise good Matt Yglesias is at it again, hyping Sweden's famous "negative interest rate" experiment.
As I've noted before, this entire story is the result of a misunderstanding and nothing that Matt has said on the subject is true.
1) Sweden never paid a negative interest rate on overnight reserves, and in fact they never stopped paying positive interest rates on overnight reserves.
2) Paying interest on reserves does not cause banks to "hoard reserves" and refuse to loan them out because banks do not loan their reserves to the public. Ever.