EconPapers    
Economics at your fingertips  
 

Negative interest rates in Switzerland: What have we learned?

Jean-Pierre Danthine

No 11969, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The Swiss National Bank has introduced negative interest rates of minus 75bp in mid- January 2015. Large exemptions on commercial bank holdings at the SNB result in the average rate being significantly less negative than the marginal rate. With this constellation the policy transmission to the real economy is asymmetric. It fully satisfies the needs of a SOE in search of a negative interest differential, not those of an economy aiming at a ‘classical’ monetary stimulus at the zero bound. While the Swiss design would make it possible to impose rates that are significantly more negative with modest complementary features, the unpopularity of negative rates makes it likely that the ambition to totally free monetary policy of the ZLB will be thwarted by democratic realities in the near future.

Keywords: Negative interest rates; Zero-lower-bound; Cashless economy (search for similar items in EconPapers)
Date: 2017-04
New Economics Papers: this item is included in nep-mac and nep-mon
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP11969 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Negative interest rates in Switzerland: What have we learned? (2018)
Working Paper: Negative interest rates in Switzerland: What have we learned? (2018)
Working Paper: Negative interest rates in Switzerland: what have we learned? (2017) Downloads
Working Paper: Negative interest rates in Switzerland: what have we learned? (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:11969

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP11969

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2025-03-19
Handle: RePEc:cpr:ceprdp:11969