Please use this identifier to cite or link to this item: https://ktisis.cut.ac.cy/handle/10488/13645
Title: What if they had not Gone Negative? A Counterfactual Assessment of the Impact from Negative Interest Rates
Authors: Michail, Nektarios A. 
Major Field of Science: Social Sciences
Field Category: Economics and Business
Keywords: Estimation technique;Negative interest rates;European economies
Issue Date: Feb-2019
Source: Oxford Bulletin of Economics and Statistics, 2019, vol. 81, no. 1, pp. 1-19
Volume: 81
Issue: 1
Start page: 1
End page: 19
Journal: Oxford Bulletin of Economics and Statistics 
Abstract: The counterfactual estimation technique of Pesaran and Smith () is employed to provide an assessment of the impact stemming from the implementation of negative interest rates in three European economies (Denmark, Sweden and Switzerland). The analysis indicates that negative interest rates did not have a significant effect on bank lending growth or inflation in any country. This failure to reject the policy ineffectiveness hypothesis most likely lies in the fact that negative interest rates did not ease the situation for the factors restricting the supply of bank lending, namely bank funding costs and Return-on-Equity.
ISSN: 1468-0084
DOI: 10.1111/obes.12251
Rights: © The Department of Economics, University of Oxford and John Wiley & Sons Ltd
Type: Article
Affiliation : Central Bank of Cyprus 
Cyprus University of Technology 
Appears in Collections:Άρθρα/Articles

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