Darracq Pariès, Matthieu; Kok Sørensen, Christoffer; … - 2020
suggests that the reversal interest rate is located in negative territory of around −1% per annum. The possibility of the … reversal interest rate creates a novel motive for macroprudential policy. We show that macroprudential policy in the form of a … encountering the reversal rate, improves welfare and reduces economic fluctuations. This new motive emphasizes also the strategic …