Negative real interest rates, although they sound counterintuitive, have existed at various times in history. Recently, central banks in Switzerland, Denmark, Sweden, Japan and the euro zone have adopted such policies either to manage exchange rates or to provide stimulus in today’s low-growth environment. Economist Jean-Pierre Danthine examines the impacts of such policies. Although his paper is rather technical and would have benefited from editing for clarity, it provides some good nuggets of information about negative rates’ impacts on society. getAbstract suggests Danthine’s eye-opening report to investors, policy makers and executives.
In this summary, you will learn
- Why some central banks have instituted negative interest rate policies,
- How effective those policies have been and
- What social consequences negative interest rates might have.
About the Author
Jean-Pierre Danthine is president of the Paris School of Economics.
Comment on this summary
Customers who read this summary also read
Jennifer Blanke and Signe Krogstrup
World Economic Forum, 2016
David Wessel and Peter Olson
Brookings Institution, 2016
Federal Reserve Board, 2016
Adolfo Barajas et al.
Finance & Development Magazine, 2016