scholarly journals Empirical Evidence of the Lending Channel of Monetary Policy under Negative Interest Rates

2021 ◽  
Author(s):  
Whelsy Boungou
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Empirical Evidence ◽  
Lending Channel ◽  
Negative Interest Rates

scholarly journals Impact of Monetary Policy on Economic Growth: Empirical Evidence in Vietnam

2019 ◽  
Vol 5 (10) ◽  
Author(s):  
Tang My Sang
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
Empirical Evidence ◽  
Money Supply ◽  
Negative Impact ◽  
Positive Impact ◽  
Secondary Data ◽  
The Impact

Through the secondary data collected from 2009 to 2018, the research used Var method to test the impact of monetary policy on economic growth in Vietnam. The results show that there is a relationship between the variables of monetary policy and economic growth, in which the money supply has a positive impact at a high significant level, interest rates have a negative impact on Vietnam economic growth. From the results obtained, the research proposed solutions for operating monetary policy.

scholarly journals Monetary Policy and Bank Equity Values in a Time of Low and Negative Interest Rates

2019 ◽  
Vol 2019 (064) ◽  
Author(s):  
◽  
Miguel Ampudia ◽  
Skander J. Van den Heuvel ◽  
◽  
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Equity Values ◽  
Negative Interest Rates ◽  
Bank Equity

scholarly journals Consequences of divergent monetary policies of the highly industrialised countries on global and local level

2016 ◽  
pp. 755-766
Author(s):  
Djordje Djukic
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Positive Impact ◽  
Local Level ◽  
Foreign Debt ◽  
Negative Consequences ◽  
Negative Effects ◽  
Negative Interest Rates ◽  
The Usa ◽  
Buy Back

In contrast to the USA, negative interest rates in the Eurozone and other European countries, as a result of unprecedented expansionary monetary policy implemented by the European Central Bank since 2014, will have far-reaching negative consequences. Decisions of citizens to withdraw deposits from banks and keep them in safe deposit boxes, invest in real estate and land, and decisions of companies to hold large amounts of cash or to buy-back shares and close up, under conditions of divergent policies of central banks in highly industrialized countries, indicates the presence of risk of secular stagnation. Faster recovery of the USA economy and normalization of FED monetary policy through the cycle of increasing the key interest rate will contribute to further strengthening of the US dollar against the euro. It will significantly increase the burden of foreign debt servicing for highly indebted countries that have borrowed in US dollars. This is the case with Serbia. Continuation of ECB expansionary monetary policy would have a positive impact on real GDP growth in Serbia in 2017. Close to zero interest rates on the savings of citizens in Eurozone would negatively influence its future economic growth. Negative effects of such a policy will also be manifested in Serbia because the interest rates on savings in banks are also close to zero.

scholarly journals Monetary Policy with Negative Interest Rates: Decoupling Cash from Electronic Money

2018 ◽  
Vol 18 (191) ◽  
pp. 1 ◽  
Author(s):  
Katrin Assenmacher ◽  
Signe Krogstrup
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Electronic Money ◽  
Negative Interest Rates

scholarly journals Macroeconomic Policy at a Crossroads

2021 ◽  
Vol 65 (7) ◽  
pp. 5-15
Author(s):  
A. Kholopov
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Interest Rates ◽  
Public Debt ◽  
Financial Stability ◽  
Macroeconomic Policy ◽  
Bank Lending ◽  
Central Banks ◽  
Fiscal Stimulus ◽  
Negative Interest Rates

The article examines macroeconomic policy options for advanced economies to respond to adverse shocks in the environment of very low interest rates and very high levels of public debt, when the scope for using conventional policy tools is limited. The standard transmission mechanism of monetary policy in the ELB conditions stops working normally, and the economy faces the “liquidity trap” effect. The deployment by central banks of unconventional monetary tools (forward guidance, quantitative easing, and negative interest rates) after global financial crisis was helpful in combatting the downturn, but carries risk of possible side effects. Large-scale purchases of financial assets lead to significant increase in central banks’ balance sheets, and this creates a threat to future financial stability and central bank independence. Negative interest rates can have detrimental effects on bank profitability and be contractionary through bank lending. There is a consensus that today fiscal policy has to play a major role in stabilizing the business cycle. But the effectiveness of conventional tools of discretional fiscal policy is uncertain because of long political lags and small spending multiplier. Existing automatic fiscal stabilizers are focused on social protection goals and not on macroeconomic stabilization. Thus, the newly proposed measures for rules-based fiscal stimulus (asymmetric semiautomatic stabilizers – tax or spending measures triggered by the crossing of some statistical threshold, e.g. a high unemployment rate) and unconventional fiscal policy (the use of consumption taxes to increase inflation expectations) have become the object of active discussion. Here lies the danger in the fusion of monetary and fiscal policy: central banks’ operations are becoming increasingly quasi-fiscal, aimed at financing budget deficit, and functions of monetary policy are proposed to assign to fiscal policy. Besides, the expansion of fiscal stimulus threatens financial stability in the future, as it leads to increase in public debt and narrows a country’s fiscal space.

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