Negative interest rates: Causes and consequences

Damir Tokic

Journal of Asset Management, 2017, vol. 18, issue 4, No 1, 243-254

Abstract: Abstract As of mid-2016, almost one-third of global economy has been affected by negative interest rates. Nevertheless, the prevailing opinion among influential policymakers has been that the nominal interest rates are essentially zero-bound. Thus, it’s not really clear what caused the recent breach of the zero percent level in many countries, and further, whether the US economy will also experience negative nominal interest rates. This article explains the following: (1) the arguments for the zero-bound on nominal interest rates, (2) the causes of the breach of the zero percent level, and (3) the implications for investors.

Keywords: negative interest rates; negative interest rate policy; stock market; gold; globalization (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1057/s41260-016-0035-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
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:pal:assmgt:v:18:y:2017:i:4:d:10.1057_s41260-016-0035-2

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/41260

DOI: 10.1057/s41260-016-0035-2

Access Statistics for this article

Journal of Asset Management is currently edited by Marielle de Jong and Dan diBartolomeo

More articles in Journal of Asset Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().