Review Of Zero Interest Rate Ideas. Web negative rates and the transmission of monetary policy. Published as part of the ecb economic bulletin, issue 3/2020.

The main arrow in a central bank's monetary policy quiver is interest rates. At this zero lower bound the central bank faces difficulties with conventional monetary policy, because it is generally believed that market interest rates cannot realistically be pushed down into negative territory. Web introduction to combat the recent financial crisis and the resulting economic downturn, the federal reserve and many other central banks pushed their policy interest rates close to the zero lower bound and turned, among other unconventional policies, to forward guidance.





