Riksbank’s negative rates successfully passed through to economy – research
Findings contrast with recent work by Larry Summers and co-authors
The negatives rates implemented by Sveriges Riksbank since February 2015 have successfully loosened financial conditions in Sweden, says research published by the central bank on January 22.
In Pass-through at mildly negative policy rates: the Swedish case, researchers Henrik Erikson and David Vestin of the Riksbank’s monetary policy department analyse the transmission channels of this ultra-loose policy to the real economy.
The findings contrast with those from a recent paper co-authored by
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