Topic Videos
Negative Interest Rates Short Answers
- Level:
- AS, A-Level, IB, BTEC National
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 9 Oct 2019
In some Euro Zone countries, both the nominal and real interest rate has become negative. Using a numerical example, distinguish between nominal and real interest rates.Explain how negative interest rates might impact on two macroeconomic objectives. Here is a short video providing an answer to this question.
Gillian Tett: There is a downside to negative interest rates — and it's all psychological. People feel so anxious when this happens that the fear ends up undermining the benefits of cheaper loans. https://t.co/cBGDjc2NU1
— Financial Times (@FinancialTimes) October 9, 2019
You might also like

Monetary Policy less powerful in recessions
9th October 2013
Managed Floating Exchange Rates
Study Notes

Do interest rates affect business investment?
17th October 2014

Monetary Policy: Key Factors Affecting Interest Rates
17th August 2014

econoMAX - How does Quantitative Easing affect the Exchange Rate
7th November 2013

econoMAX - Forward Guidance is No Panacea
8th October 2013

UK Economy: Carney Provides Forward Guidance on Interest Rates
7th August 2013
Monetary Policy & Exchange Rates (Revision Presentation)
Teaching PowerPoints