The Evidence Is in on Negative Interest Rate Policies by Luis Brandao-Marques and Gaston Gelos published Blog IMF (3/2021).
“Interest rates are low, and “lower for longer” has become something of a mantra among policy makers, regulators, and other market watchers. But negative interest rates raise an entirely new set of questions.
After eight years of experience with negative interest rate policies, the initial skepticism (paying interest to borrowers rather than savers was certainly unprecedented) has proven largely misplaced. The evidence so far suggests that negative interest policies have worked…”