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Secular Stagnation And The Negative Interest Rate Conundrum: International Analysis Of The Period 2010-2019

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  • WARBURTON, Christopher E.S.

Abstract

The negative interest rate policy (NIRP), which is an unconventional monetary policy, is increasingly being diagnosed for symptoms of secular stagnation as some central banks exploit anticipatory inflation to achieve full employment. Notwithstanding, the efficacy of the unconventional monetary policy (UMP) is precarious and rather ambivalent. This paper argues that NIRP is unsuitable for structural (long-term) macroeconomic problems and that its adoption generates inconsistent and precarious results that are transient and potentially harmful.

Suggested Citation

  • WARBURTON, Christopher E.S., 2021. "Secular Stagnation And The Negative Interest Rate Conundrum: International Analysis Of The Period 2010-2019," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 21(1), pages 19-36.
    • Handle: RePEc:eaa:aeinde:v:21:y:2021:i:1_2
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    File URL: http://www.usc.es/~economet/reviews/aeid2112.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Ageing population; Expected inflation; Negative interest rates; Rational expectations; Secular stagnation; Poverty;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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