Monetary policy with negative nominal interest rates

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Abstract

Economists disagree on the macroeconomic role of negative interest rates. This column describes how, due to an apparent zero lower bound on deposit rates, negative policy rates have so far had very limited impact on the deposit rates faced by households and firms, and this lower bound on the deposit rate seems to be causing a decline in pass-through to lending rates as well. Negative interest rates thus appear ineffective in stimulating aggregate demand.

Citation

Getz Wold, Ella, Ragnar Juelsrud, and Gauti Eggertsson. “Monetary Policy with Negative Nominal Interest Rates.” VoxEU - CEPR, January 31, 2018.

@online{getz_wold_juelsrud_eggertsson_2018,
  author       = {Getz Wold, Ella and Juelsrud, Ragnar and Eggertsson, Gauti B},
  title        = {Monetary Policy with Negative Nominal Interest Rates},
  year         = {2018},
  month        = {January},
  url          = {https://cepr.org/voxeu/columns/monetary-policy-negative-nominal-interest-rates},
  note         = {Accessed: ...}
}