The effects of negative interest rates on the monetary transmission mechanism – The case of Switzerland
In this article we study how the monetary transmission mechanism (the process through which monetary policy affects aggregate demand and inflation) alters when the nominal interest rates become negative, through the case of Switzerland. The results of our models show that the effectiveness of the i...
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| Format: | Article |
| Language: | English |
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Corvinus University of Budapest
2019-11-01
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| Series: | Köz-gazdaság |
| Online Access: | http://retp.eu/index.php/retp/article/view/178 |
| _version_ | 1797954630822395904 |
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| author | Gábor Kutasi |
| author_facet | Gábor Kutasi |
| author_sort | Gábor Kutasi |
| collection | DOAJ |
| description |
In this article we study how the monetary transmission mechanism (the process through
which monetary policy affects aggregate demand and inflation) alters when the nominal
interest rates become negative, through the case of Switzerland. The results of our models
show that the effectiveness of the interest rate channel of the transmission mechanism
decreases at negative nominal interest rates. However, considering the limits of the
models and the unique factors affecting the monetary transmission in Switzerland, clear
conclusions about the effectiveness of the interest rate channel cannot be made.
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| first_indexed | 2024-04-10T23:20:31Z |
| format | Article |
| id | doaj.art-06d0951167204e8dbdcdc91eec369890 |
| institution | Directory Open Access Journal |
| issn | 1788-0696 |
| language | English |
| last_indexed | 2024-04-10T23:20:31Z |
| publishDate | 2019-11-01 |
| publisher | Corvinus University of Budapest |
| record_format | Article |
| series | Köz-gazdaság |
| spelling | doaj.art-06d0951167204e8dbdcdc91eec3698902023-01-12T15:03:21ZengCorvinus University of BudapestKöz-gazdaság1788-06962019-11-01143The effects of negative interest rates on the monetary transmission mechanism – The case of SwitzerlandGábor Kutasi In this article we study how the monetary transmission mechanism (the process through which monetary policy affects aggregate demand and inflation) alters when the nominal interest rates become negative, through the case of Switzerland. The results of our models show that the effectiveness of the interest rate channel of the transmission mechanism decreases at negative nominal interest rates. However, considering the limits of the models and the unique factors affecting the monetary transmission in Switzerland, clear conclusions about the effectiveness of the interest rate channel cannot be made. http://retp.eu/index.php/retp/article/view/178 |
| spellingShingle | Gábor Kutasi The effects of negative interest rates on the monetary transmission mechanism – The case of Switzerland Köz-gazdaság |
| title | The effects of negative interest rates on the monetary transmission mechanism – The case of Switzerland |
| title_full | The effects of negative interest rates on the monetary transmission mechanism – The case of Switzerland |
| title_fullStr | The effects of negative interest rates on the monetary transmission mechanism – The case of Switzerland |
| title_full_unstemmed | The effects of negative interest rates on the monetary transmission mechanism – The case of Switzerland |
| title_short | The effects of negative interest rates on the monetary transmission mechanism – The case of Switzerland |
| title_sort | effects of negative interest rates on the monetary transmission mechanism the case of switzerland |
| url | http://retp.eu/index.php/retp/article/view/178 |
| work_keys_str_mv | AT gaborkutasi theeffectsofnegativeinterestratesonthemonetarytransmissionmechanismthecaseofswitzerland AT gaborkutasi effectsofnegativeinterestratesonthemonetarytransmissionmechanismthecaseofswitzerland |