Fredrik N G Andersson
Associate professor
Don’t do it again! The Swedish experience with negative central bank rates in 2015-2019
Author
Summary, in English
Negative interest rates were once seen as impossible outside the realm of economic theory. However, recently several central banks have imposed such rates, with prominent economists supporting this move. This column investigates the actual effects of negative interest rates, taking evidence from the Swedish experience during 2015-2019. It is evident that the policy’s effect on the inflation rate was modest, and that it contributed to increased financial vulnerabilities. The lesson from the experiment is clear: Do not do it again.
Department/s
- Department of Economics
Publishing year
2020-05-08
Language
English
Links
Document type
Web publication
Publisher
voxeu.org
Topic
- Economics
Keywords
- monetary policy
- negative interest rates
- Riksbank
- Sweden
Status
Published
Research group
- Knut Wicksell Centre for Financial Studies