NOTES FROM THE FIELD: What’s So Negative (or Positive!) About Negative Interest Rates?


With most of the world’s economies in the doldrums, the central banks of many countries have instituted, or are considering instituting, a policy of negative interest rates. Even Fed chief Janet Yellen, of the US Federal Reserve, has said that the Fed is looking at the possibility of using negative interest rates. Go to the New York Times and search for the article entitled Negative 0.5% Interest Rate: Why People Are Paying to Save. This article discusses what negative interest rates are, why central banks are using them, and the pros and cons of this new tool of monetary policy. Please click on the following links for two articles that explain a bit more about interest rates in general, and low to negative interest rates, in particular: Interest Rate and Zero Interest Rate Policy.

This entry was posted in Economic & Business Chart Room, Notes From The Field, Uncategorized. Bookmark the permalink.