The effectiveness of a negative interest rate policy

• 成果类型: Article
• 署名作者: Onofri, Marco; Peersman, Gert; Smets, Frank
• 署名单位: Ghent University; European Central Bank
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2023.07.002
• 发表日期: 2023
• 页码: 16-33
• 关键词: Negative interest rate policy; zero lower bound; monetary policy

摘要

In a dynamic stochastic general equilibrium model that is calibrated for the euro area, a negative interest rate policy (NIRP) can have contractionary effects on the economy when interest rates on household deposits reach the zero lower bound, and such deposits are the only source of bank funding and household savings. However, by introducing additional assets to households' portfolios and alternative sources of bank funding, such as bank bonds, the NIRP becomes expansionary. Because both features characterize the euro area well, they are essential to study the effectiveness of NIRP policies. (c) 2023 Elsevier B.V. All rights reserved.