Panelists at Brookings examined the recent experience with negative interest rates, particularly in Europe, and their possible use in the U.S. The event included prominent economists from European central banks and Wall Street, as well as several academics, and former Fed chief Ben Bernanke.
Once a fantasy of a few academic economists, negative interest rates are now seen as a tool available to monetary policymakers at times of very low inflation. But they remain controversial: are negative rates a prudent and potent response to today’s lackluster economy? Or do they squeeze bank profits and hurt lending, confuse investors and consumers, and smack of desperation?
You can download the presenters' slides and replay the video from the event at Brookings' webpage.