IDEAS home Printed from https://ideas.repec.org/a/vrn/cfdide/y2020i1p441-451.html
   My bibliography  Save this article

In The Low Interests Trap

Author

Listed:
  • Krasimira Naydenova

    (University of National and World Economy – Sofia, Bulgaria)

Abstract

Interest rates with a value of zero or around zero do not automatically lead to improvement of financial conditions in Bulgaria. Low interest rates on loans are delayed by years compared to Europe and the United States, further reducing competitiveness. The high uncertainty stemming from zero interest rates keeps savings in cash and far from the much needed investment by the economy. Risk-free return is de facto negative and undermines the return realized by financial intermediaries. The capital market in Bulgaria remains far from pre-crisis levels and its unattractiveness is a factor limiting investment activity by both savers and companies.

Suggested Citation

  • Krasimira Naydenova, 2020. "In The Low Interests Trap," Economic Science, education and the real economy: Development and interactions in the digital age, Publishing house Science and Economics Varna, issue 1, pages 441-451.
    • Handle: RePEc:vrn:cfdide:y:2020:i:1:p:441-451
    as

    Download full text from publisher

    File URL: https://ue-varna.bg/~uevarna/uploads/filemanager/303/publishing-complex/2020/Economic_science_education_real_economy_T1_2020.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    interest rate; risk free rate; zero or negative rate; liquidity trap; capital market;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrn:cfdide:y:2020:i:1:p:441-451. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zoya Mladenova (email available below). General contact details of provider: https://edirc.repec.org/data/uevarbg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.