Low Interest Rates and Monetary Policy Effectiveness
World economy is stuck in low interest rates environment. Euro area, japan have even negative interest rates. US Fed Reserve since December 2016 has started raising interest rates.
Attempts by Central Banks have not been effective in increasing economic growth. Many Economists now are presenting counter intuitive reasons for low growth.
Please see my earlier related posts.
Business Investments and Low Interest Rates
Mergers and Acquisitions – Long Term Trends and Waves
Since 2016, there are several new studies published exploring effectiveness of monetary policy in low interest rates environment.
Is monetary policy less effective when interest rates are persistently low?
by Claudio Borio and Boris Hofmann
April 2017
Is Monetary Policy Less Effective When Interest Rates are Persistently Low?
In March 2017, Brookings Institution published the following study by the economists of the US Federal Reserve.
Monetary policy in a low interest rate world
Fed Reserve of Chicago published speech given by Charles Evans in 2016.
Monetary Policy in a Lower Interest Rate Environment
Lecture by Vítor Constâncio, Vice-President of the ECB, Macroeconomics Symposium at Utrecht School of Economics, 15 June 2016
The challenge of low real interest rates for monetary policy
Journal of Policy Modeling published a paper by Ken Rogoff. Paper was presented at American Economic Association, 2017.
Monetary policy in a low interest rate world
Eight BIS CCA Research Conference on “Low interest rates, monetary policy and international spillovers”, hosted by the Board of Governors of the Federal Reserve System, Washington DC, 25-26 May 2017
Low interest rates, monetary policy and international spillovers
Economist Magazine published an article on views of Bill Gross and others.
November 2015
Do ultra-low interest rates really damage growth?
Bloomberg Business Week published an article describing views of Charles Calomiris and others.
June 2017
Is the World Overdoing Low Interest Rates?
Claudio Borio and Boris Hofmann
The Paper was prepared for the Reserve Bank of Australia conference
“Monetary Policy and Financial Stability in a World of Low Interest Rates”,
16-17 March 2017, Sydney
Is monetary policy less effective when interest rates are persistently low?
Monetary policy and bank lending in a low interest rate environment: diminishing effectiveness?
Claudio Borio and Leonardo Gambacorta
February 2017
Monetary policy and bank lending in a low interest rate environment: diminishing effectiveness?
Negative Interest Rate Policy (NIRP):
Implications for Monetary Transmission and Bank Profitability in the Euro Area
Prepared by Andreas (Andy) Jobst and Huidan Lin
IMF
August 2016
James Bullard, President and CEO of Federal Reserve Bank of St. Louis
March 24, 2009
The Henry Thornton Lecture, Cass Business School, London
Effective Monetary Policy in a Low Interest Rate Environment
Federal Reserve Bank of New York
Monetary Policy, Financial Conditions, and Financial Stability
Tobias Adrian
Nellie Liang
Monetary Policy, Financial Conditions, and Financial Stability
Monetary policy, the financial cycle and ultra-low interest rates
Mikael Juselius of Bank of Finland
DNB Workshop on “Estimating and Interpreting Financial Cycles”
Amsterdam, 2 September 2016
Monetary policy, the financial cycle and ultra-low interest rates
BIS Paper
Monetary policy, the financial cycle and ultra-low interest rates
The dynamics of real interest rates, monetary policy and its limits
Philippe d’Arvisenet
May 2016
The dynamics of real interest rates, monetary policy and its limits
Output Gaps and Monetary Policy at Low Interest Rates
By Roberto M. Billi
Output Gaps and Monetary Policy at Low Interest Rates
The insensitivity of investment to interest rates: Evidence from a survey of CFOs
Steve A. Sharpe and Gustavo A. Suarez
2014-02
The insensitivity of investment to interest rates: Evidence from a survey of CFOs
Does Prolonged Monetary Policy Easing Increase Financial Vulnerability?
Prepared by Stephen Cecchetti, Tommaso Mancini-Griffoli, and Machiko Narita
February 2017
Does Prolonged Monetary Policy Easing Increase Financial Vulnerability?
The Microeconomic Perils of Monetary Policy Experiments
Charles W. Calomiris
Cato Institute
The Microeconomic Perils of Monetary Policy Experiments
Why Have the Fed’s Policies Failed to Stimulate the Economy?
Mickey D. Levy
Cato Institute
Why Have the Fed’s Policies Failed to Stimulate the Economy?
Viewpoints which Matter 