Starting in 2012 several central banks introduced negative interest rate policies (NIRP) that brought up many important questions: To what extent would negative policy rates be transmitted to other interest rates? Would there be counterproductive effects, with economic agents hoarding cash and financial intermediaries reducing lending? Would the introduction of NIRP bring about disruptions in the functioning of financial markets? Moreover, NIRP was and remains politically controversial. Because the COVID-19 crisis emerged in an environment wherein many central banks lack conventional monetary policy space, the topic is back in the forefront.
Join us for a presentation of new IMF research on the effects of NIRP and a discussion about the experience so far.
Gaston Gelos, Assistant Director, IMF Monetary and Capital Markets Department
Silvana Tenreyro, Professor of Economics, London School of Economics, and External Member of the Bank of England Monetary Policy Committee
Jörg Krämer, Chief Economist, Commerzbank
Volker Wieland, Endowed Chair of Monetary Economics and Managing Director, Institute for Monetary and Financial Stability