Negative Interest Rate Policies: A Survey

Luis Brandão-Marques, Marco Casiraghi, R. Gaston Gelos (), Gunes Kamber and Roland Meeks
Additional contact information
Luis Brandão-Marques: International Monetary Fund, Washington, DC, USA
Marco Casiraghi: Evercore ISI, Washington, DC, USA
Authors registered in the RePEc Author Service: Luis Brandao Marques

Annual Review of Economics, 2024, vol. 16, issue 1, 305-328

Abstract: This article surveys studies on the impact of central bank negative interest rate policies (NIRP). It reviews recent research on the effects of NIRP on financial markets, banks, households, firms, and the macroeconomy. Overall, policy rate cuts when interest rates are negative propagated along the yield curve, with the first policy cut below zero contributing significantly to the fall in longer-term yields. Lending and deposit rates also decreased following the adoption of NIRP. Based on the experience so far, bank lending volumes rose, and bank profits did not significantly deteriorate, although there was considerable heterogeneity in the effects. The impact of NIRP on inflation and output appears to have been comparable to that of conventional interest rate cuts.

Keywords: negative interest rates; monetary policy; bank lending and profitability; nonbank financial institutions (search for similar items in EconPapers)
JEL-codes: E43 E52 G21 G22 G23 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1146/annurev-economics-080323-042145
Full text downloads are only available to subscribers. Visit the abstract page for more information.

Related works:
Working Paper: Negative Interest Rate Policies: A Survey (2021)
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:anr:reveco:v:16:y:2024:p:305-328

Ordering information: This journal article can be ordered from
http://www.annualreviews.org/action/ecommerce

DOI: 10.1146/annurev-economics-080323-042145

Access Statistics for this article

More articles in Annual Review of Economics from Annual Reviews Annual Reviews 4139 El Camino Way Palo Alto, CA 94306, USA.
Bibliographic data for series maintained by http://www.annualreviews.org ().