Brunnermeier on Negative Interest Rates

Monday, Aug 29, 2016
by vrosenth

The Financial Times quoted Markus Brunnermeier as giving the following advice to Central Bankers on the advisability of negative interest rates: "Yes you can go negative, but check your banking system before you do it, and don't do it loo long, and do it in the right sequence."  Brunnermeier's research has been looking at the possibility that as rates are cut they can become counter-productive, to read his paper "The Reversal Interest Rate" with Yann Koby and to look at presentation slides click here. And here is a link to the FT article.