The recent application of negative policy interest rates in the euro area and in other economies: rationale and preliminary evidence on their effects

Jorge Martínez Pagés and Antonio Millaruelo

Economic Bulletin, 2016, issue JUL, No 4, 3-13

Abstract: This article analyses the recent application of negative policy interest rates by several central banks, including the ECB. The preliminary evidence presented suggests that the use of this additional monetary policy headroom appears to have been effective in the euro area, prompting — together with the other expansionary measures — easier financial conditions. The article also discusses possible adverse effects associated with the application of negative interest rates.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:bde:journl:y:2016:i:7:n:4

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