Don’t do it again! The Swedish experience with negative central bank rates in 2015-2019
(2020)- Abstract
- 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.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/3b13e985-3dd3-420b-af41-42d72bd4814c
- author
- Andersson, Fredrik N G LU and Jonung, Lars LU
- organization
- publishing date
- 2020-05-08
- type
- Other contribution
- publication status
- published
- subject
- keywords
- monetary policy, negative interest rates, Riksbank, Sweden
- publisher
- voxeu.org
- language
- English
- LU publication?
- yes
- id
- 3b13e985-3dd3-420b-af41-42d72bd4814c
- alternative location
- https://voxeu.org/article/swedish-experience-negative-central-bank-rates
- date added to LUP
- 2020-05-11 07:20:15
- date last changed
- 2023-02-03 15:15:15
@misc{3b13e985-3dd3-420b-af41-42d72bd4814c, abstract = {{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.}}, author = {{Andersson, Fredrik N G and Jonung, Lars}}, keywords = {{monetary policy; negative interest rates; Riksbank; Sweden}}, language = {{eng}}, month = {{05}}, publisher = {{voxeu.org}}, title = {{Don’t do it again! The Swedish experience with negative central bank rates in 2015-2019}}, url = {{https://voxeu.org/article/swedish-experience-negative-central-bank-rates}}, year = {{2020}}, }