Going Negative at the Zero Lower Bound: The Effects of Negative Nominal Interest Rates

• 成果类型: Article
• 署名作者: Ulate, Mauricio
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - San Francisco
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer20190848
• 发表日期: 2021
• 页码: 1-40
• 关键词: competition; reserves; shocks

摘要

After the Great Recession several central banks started setting negative nominal interest rates in an expansionary attempt, but the effectiveness of this measure remains unclear. Negative rates can stimulate the economy by lowering the rates that commercial banks charge on loans, but they can also erode bank profitability by squeezing deposit spreads. This paper studies the effects of negative rates in a new DSGE model where banks intermediate the transmission of monetary policy. I use hank-level data to calibrate the model and find that monetary policy in negative territory is between 60 and 90 percent as effective as in positive territory