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Exchange rate behaviour when interest rates are negative: The evidence
Negative nominal interest rates have been a striking feature of the macroeconomic and financial environment since the Global Crisis. Switzerland, which has had negative nominal interest rates for more than three of the last five years, was the first economy to experience negative interest rates in a substantive way. It has also experienced the largest negative interest rates in absolute value. A number of other economies have also implemented negative nominal interest rates, both small countries like Denmark and Sweden and powerhouses like the Eurozone and Japan. Negative interest rates have consequences for banks, ... (full story)