BoE and Fed will reject negative interest rate trap

...We are delighted to bring you a new contribution from Dr. Dan McLaughlin, former Chief Economist at Bank of Ireland, on why negative interest rates are a trap that the rest of the world will do well to avoid...

Ten years ago the Swedish central bank broke new monetary policy ground by cutting one of its policy rates into negative territory. Four other central banks followed - Switzerland, Denmark, Japan and the ECB - and in all cases longer term rates are also negative, albeit to varying maturities, while expectations on the return to positive rates also differ . . .

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