THE NEGATIVE INTEREST RATE POLICY: THE EVENTUALITIES AND IMPLICATIONS
Journal Title: JOEEP: Journal of Emerging Economies and Policy - Year 2016, Vol 1, Issue 1
Abstract
In the awakening of 2008’s financial meltdown, the fiscal authorities have ambitiously plunged into new quests to figure out the distresses originated by traditionally the lowest interest rate of zero. Right after some plaintive sobering times, they have started implementing sophisticated quantitative easing policies such as adopting negative policy rate, and charging negative interest rates on the banks’ deposits hold in central bank accounts in order to prevent numerous undesired outcomes like a catastrophic liquidity crisis in Europe, a deterioration in alarming recession already become permanent in Japan, and menacingly overvaluation of some developed countries’ currencies. The point of our study is to scrutinize the underlying impacts of negative interest rate on the global sphere of banking and finance. Within the context of our study, the concept of negative interest rates is theoretically approached, and a wide range of diverse views dominant in academic literature is included. Across the research, conspicuous examples of countries embracing negative interest rate policies are attentively probed through elaborately analyzing the functioning of monetary transmission mechanisms, and the economic reflections of interest rate practices indigenized by central banks around the world. In the final chapter, the prospective consequences of negative interest rate policies are thoroughly quantized. The study is of vital importance for multifarious economic entities to intimately comprehend the negative interest rate policy.
Authors and Affiliations
Selman Yılmaz, Cansu ŞARKAYA İÇELLIOĞLU
Keywords
Related Articles
- EP ID EP647231
- DOI -
- Views 84
- Downloads 0
2001 SONRASI İSLAM ÜLKELERİ ARASI İLİŞKİLERDE RUSYA VE ABD ETKİSİ: İRAN, SUUDİ ARABİSTAN VE MISIR ÖRNEKLERİ
Russia and the United States, two superpowers of the world after 2001; It appears that there is a direct or indirect influence on the formation of foreign policies between Islamic countries. When we look at relations wit...
AN ASSESSMENT ON THE PROFITABILITY OF AIRLINE COMPANIES: TURKISH AIRLINES EXAMPLE
It is increasingly important that airlines have an important position in the transportation and logistics sector. Although the aviation sector is highly affected by economic events, political events and terrorist acts, t...
MULTIMODAL DANGEROUS CARGO TRANSPORTATION PROCESS IN TURKEY: CATCHING EUROPEAN UNION STANDARDS
This study investigated European Union dangerous goods transportation regulations and their affects on Turkey’s export and import activities in respect to the IMDG, International Maritime Dangerous Goods transportation r...
HAVAYOLU TEDARİKÇİLERİNİN HAVAYOLU VE HAVAYOLU MÜŞTERİLERİ İLE İLİŞKİLERİ: BALIK-KILÇIK MODELİ
With the development of technology in the developing global world, airway transportation is the most important compared to other transportation types. As a result of the importance of the aviation industry, airline opera...
PATTERNS OF SME FINANCING IN TURKEY
SMEs make up the majority of privately owned corporations in the developing and developed economies. The literature basically contends that access to bank financing is essential for SMEs because they do not generate suff...