Negative Interest Rate Policies: A Survey

Luis Brandao-Marques, Marco Casiraghi, Gunes Kamber, Roland Meeks and R. Gaston Gelos ()
Authors registered in the RePEc Author Service: Luis Brandao Marques

No 16016, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper 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 propagate 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 decrease following the adoption of NIRP. Based on the experience so far, bank lending volumes have risen, and bank profits have not significantly deteriorated, although there is considerable heterogeneity in the effects. The impact of NIRP on inflation and output appears to be comparable to that of conventional interest rate cuts.

Keywords: Negative interest rates; Monetary policy; Bank lending; Bank profitability; Nonbank financial institutions (search for similar items in EconPapers)
JEL-codes: E43 E52 G21 G22 G23 (search for similar items in EconPapers)
Date: 2021-04
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP16016 (application/pdf)

Related works:
Journal Article: Negative Interest Rate Policies: A Survey (2024)
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:16016

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP16016

Access Statistics for this paper

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