Summary of Negative Interest Rates
Absolutely Everything You Need to Know
World Economic Forum, 2016
Negative interest rates are a reality in some countries today. But exactly how do they work?
In today’s environment of low growth and subdued inflation, central bankers in some countries are experimenting with negative interest rates to see how far they can go to boost economies without inciting a public backlash. But how do negative interest rates work, and are they actually effective in stimulating growth? Economists Jennifer Blanke and Signe Krogstrup delve into the matter in this informative report, outlining the practical aspects and potential ramifications of negative interest rates. getAbstract recommends their succinct and accessible article to investors and executives for its perspective on a new wrinkle in monetary policy.
In this summary, you will learn
- Which countries have instituted negative interest rates,
- How the rates work in theory and in practice, and
- How effective they’ve been so far in spurring growth.
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