Drawing on theoretical arguments and empirical research, explain in detail the efficacy of the negative interest rate policy (NIRP) that has been undertaken by certain central banks. Also evaluate whether such a policy would have any adverse effect on the banking sector.

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter13: Money And The Financial System
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Drawing on theoretical arguments and empirical research, explain in detail the efficacy of
the negative interest rate policy (NIRP) that has been undertaken by certain central banks.
Also evaluate whether such a policy would have any adverse effect on the banking sector.
Transcribed Image Text:Drawing on theoretical arguments and empirical research, explain in detail the efficacy of the negative interest rate policy (NIRP) that has been undertaken by certain central banks. Also evaluate whether such a policy would have any adverse effect on the banking sector.
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