EconPapers    
Economics at your fingertips  
 

IN THE LOW INTERESTS TRAP

Krasimira Naydenova ()
Additional contact information
Krasimira Naydenova: University of National and World Economy – Sofia, Bulgaria

Economic Science, education and the real economy: Development and interactions in the digital age, 2020, issue 1, 441-451

Abstract: Interest rates with a value of zero or around zero do not automatically lead to improvement of financial conditions in Bulgaria. Low interest rates on loans are delayed by years compared to Europe and the United States, further reducing competitiveness. The high uncertainty stemming from zero interest rates keeps savings in cash and far from the much needed investment by the economy. Risk-free return is de facto negative and undermines the return realized by financial intermediaries. The capital market in Bulgaria remains far from pre-crisis levels and its unattractiveness is a factor limiting investment activity by both savers and companies.

Keywords: interest rate; risk free rate; zero or negative rate; liquidity trap; capital market (search for similar items in EconPapers)
JEL-codes: G10 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ue-varna.bg/~uevarna/uploads/filemanager/3 ... _economy_T1_2020.pdf (application/pdf)

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:vrn:cfdide:y:2020:i:1:p:441-451

Access Statistics for this article

Economic Science, education and the real economy: Development and interactions in the digital age is currently edited by Zoya Mladenova

More articles in Economic Science, education and the real economy: Development and interactions in the digital age from Publishing house Science and Economics Varna Contact information at EDIRC.
Bibliographic data for series maintained by Zoya Mladenova ().

 
Page updated 2025-03-20
Handle: RePEc:vrn:cfdide:y:2020:i:1:p:441-451