Central banking below zero: the implementation of negative interest rates in Europe and Japan
| Autor: | Stefan Angrick, Naoko Nemoto |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Money market
050208 finance media_common.quotation_subject 05 social sciences General Social Sciences Monetary economics Private sector General Business Management and Accounting Interest rate Market liquidity 0502 economics and business Development economics Financial crisis Economics Balance sheet 050207 economics Public finance media_common Social equality |
| Zdroj: | Asia Europe Journal. 15:417-443 |
| ISSN: | 1612-1031 1610-2932 |
| DOI: | 10.1007/s10308-017-0492-3 |
| Popis: | This paper provides an overview of the operational implementation of negative interest rates in Europe and Japan. Drawing attention to the fact that there is precedent for negative policy rates and negative money market rates, the paper addresses conceptual issues and summarizes measures which define negative interest rate policy. Based on detailed institutional analysis and an examination of the interaction of interest rate policies with balance sheet policies, it is argued that there exists substantial heterogeneity in the purpose, design, and operational specificities of negative interest rate policies across economies, with significant consequences for effective market rates, private sector funding conditions, and expectations. Summarizing transmission channels of negative rates, benefits, and risks of the policy, the paper calls attention to potential adverse effects resulting from the interaction of negative interest rates with tighter liquidity and capital standards adopted since the Global Financial Crisis. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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