, Columnist
Wall Street Is Wrong About Negative Interest Rates
There's little evidence in Europe that the policy is harmful. Indeed, it might be more effective if sub-zero rates were passed on to more customers.
The bull case.
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The titans of finance have a new foe, and it’s not Jeremy Corbyn or Elizabeth Warren. Wall Street’s elite is attacking Europe’s central banks over their reliance on negative interest rates, saying they’re hurting the economy.
Monetary authorities do need to be mindful of the side effects of unconventional measures. But there’s little evidence that negative rates are proving harmful. Indeed, they might be more effective still if bankers passed them onto consumers more.