Lars Jonung
Professor emeritus
Don’t do it again! The Swedish experience with negative central bank rates in 2015-2019
Författare
Summary, in English
Negative interest rates were once seen as impossible outside the realm of economic theory. However, recently several central banks have imposed such rates, with prominent economists supporting this move. This column investigates the actual effects of negative interest rates, taking evidence from the Swedish experience during 2015-2019. It is evident that the policy’s effect on the inflation rate was modest, and that it contributed to increased financial vulnerabilities. The lesson from the experiment is clear: Do not do it again.
Avdelning/ar
- Nationalekonomiska institutionen
Publiceringsår
2020-05-08
Språk
Engelska
Länkar
Dokumenttyp
Webbpublikation
Förlag
voxeu.org
Ämne
- Economics
Nyckelord
- monetary policy
- negative interest rates
- Riksbank
- Sweden
Status
Published
Forskningsgrupp
- Knut Wicksell Centre for Financial Studies