The article discusses the practical challenges and implications of negative interest rates (NIRP) on commercial banks and the broader economy. It highlights the reluctance of commercial banks to pass negative rates to clients, the impact on bank profitability, and the differential effects in various Eurozone countries. It also explores the potential limits of how low central banks can set interest rates and the role of currency devaluation in small open economies.
doj/DataSet10/EFTA01388575.pdf
{"title":"The limits of monetary policy","key_people":["Silvio Gesell","Lars E.O. Svensson"],"document_date":"March 2016","document_type":"other","key_locations":["Sweden","Denmark","Switzerland","Eurozone","Japan"],"document_subtype":"article","key_organizations":["ECB"],"reference_numbers":["DB-SDNY-0092207","SDNY_GM_00238391","EFTA01388575"]}