The ECB’s Negative Rate Policy Has Been Effective but Faces Limits
By Andy Jobst and Huidan Lin
Versions in Français (French), and Español (Spanish)
More than two years ago, seeking to revive a moribund economy, the European Central Bank (ECB) embarked on a new monetary policy measure: charging interest on excess liquidity that banks held at the central bank. The move complemented a series of other easing measures aimed at bringing inflation back to the ECB’s price stability objective of below, but close to, two percent over the medium term. […]