Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/250948 
Year of Publication: 
2021
Citation: 
[Journal:] CESifo Forum [ISSN:] 2190-717X [Volume:] 22 [Issue:] 06 [Publisher:] ifo Institut - Leibniz-Institut für Wirtschaftsforschung an der Universität München [Place:] München [Year:] 2021 [Pages:] 27-32
Publisher: 
ifo Institut - Leibniz-Institut für Wirtschaftsforschung an der Universität München, München
Abstract: 
For almost 10 years, several central banks in advanced economies have cut and maintained their key policy rates below zero. Central banks in Denmark, the euro area, Japan, Sweden, and Switzerland had turned to such policies in response to persistently below-target inflation rates and a very low neutral real interest rate. However, negative rate policies remain controversial, and their potential side effects are subject to much debate. This paper surveys the body of research that has grown out of the experience with the policy to date, and takes stock of the evidence. Overall, the experience with negative rates has broadly been positive. Lending and deposit rates fell following the adoption of NIRP. Bank lending volumes rose, and bank profits for the most part did not significantly deteriorate.
Document Type: 
Article

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