The Use of Negative Interest Rates to Stimulate an Economy

Business and Marketing
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Yes, I do. Christensen, an economist, investigated the results of several banks that had “implemented subzero rates.” According to the economist, there was a reduction in interest rates each time the experts reviewed the financial conditions. During a financial crisis, the implementation of negative rates increases the growth rate and the inflation rate. For that reason, lowering interest rates serves as the most effective policy. Christensen argues that the condition would be practical during the U.S. recession.
The United States Federal Reserve reduced interest rates to approximately 0.25 percent. Therefore, there was no particular time the reserve crossed the negative threshold. Christensen avers that “mildly negative U.S. policy rates” would serve the purpose of ...