Skip to content
Subscriber Only

Negative Rates Actually Cut Lending, Research Shows

  • Negative interest rates create unintended effects, paper says
  • They don’t create the right incentives to spend and invest

Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here

Central banks’ negative interest rates were supposed to increase spending, stop deflation and stimulate the economy. They may have done the exact opposite.