A Dip into Subzero Policy Rates

by Giovanni Dell’Ariccia, Vikram Haksar, and Tommaso Mancini-Griffoli

August 3, 2017

Versions in ربي (Arabic), 中文 (Chinese),  Español (Spanish), 日本語 (Japanese); Русский (Russian)

A recent IMF paper looks at the effectiveness of negative interest rates, drawing on the initial experience of the euro area, Denmark, Japan, Sweden, and Switzerland (photo: Tuckraider/iStock by Getty Images)

Zero was gradually adopted in the ancient world—both east and west—as the ultimate point of reference, a point above and below which things change. For the ancient Egyptians, zero represented the base of pyramids. In science it became the freezing point of water, in geography the altitude of the sea, in history the starting point of calendars.

In the realm of monetary policy, zero was typically seen as the lower bound for interest rates. That has changed in recent years in the context of a slow recovery from the 2008 crisis. Several central banks hit zero and began experimenting with negative interest rate policies. Most did so to counter very low inflation, but some also were concerned about currencies that were too strong. Continue reading “A Dip into Subzero Policy Rates” »

The Top Ten Blogs of 2016

by iMFdirect

What a year it has been.  12 months with big implications for the global economy.

In 2016 our readers’ curiosity focused on a wide range of hot topics in the world of economic and financial policy: the economic impact of migration, China’s economic transition, the prospects for negative interest rates, the way forward for Greece, the future of commodity prices, and the outlook for Latin America, to name a few.  We compiled this top ten list for the past year based on readership.  Continue reading “The Top Ten Blogs of 2016” »

Economics After the Great Recession

by iMFdirect

The IMF’s Annual Research Conference is coming up November 3 and 4 and the theme this year is macroeconomics after the great recession.

Continue reading “Economics After the Great Recession” »

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