Evidence of a macroeconomic reversal rate (SUERF, 2021)

Press/Media: Other

Description

Suerf policy brief

Period14 Jul 2021

Media contributions

1

Media contributions

  • TitleEvidence of a macroeconomic reversal rate
    Media name/outletSuerf
    Country/TerritoryNetherlands
    Date14/07/21
    DescriptionOur research finds that expansionary monetary policy in the euro area becomes less effective in a low interest rate environment. The usual substitution effect on spending seems then to be weaker relative to the income effect. This points towards the existence of a macroeconomic reversal interest rate and sheds new light on changes in the monetary policy transmission mechanism at the effective lower bound (ELB).
    URLhttps://www.suerf.org/publications/suerf-policy-notes-and-briefs/evidence-of-a-macroeconomic-reversal-rate/
    PersonsJan Willem van den End, Paul Konietschke, Anna Samarina, Irina Stanga