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In this paper, we survey the nascent literature on the transmission of negative policy rates. We discuss the theory of how the transmission depends on bank balance sheets, and how this changes once policy rates become negative. We review the growing evidence that negative policy rates are...
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In the present paper, we investigate the financial homogeneity of the euro area economies by contrasting eurozone … changes in the portfolio holdings of eurozone economic actors owing to economic crises and monetary policy responses. The … different Eurozone countries, both during and after the crisis. Despite some similarities in the portfolio rearrangement across …
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We study interest rates transmission to savings at low and negative rates. Exploiting cohorts of consumers from a data-rich multi-country survey, we show how the strength of interest rate transmission to savings varies with the level of nominal interest rates. This response is positive when...
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This study considers the pass-through of different ECB monetary policy measures to bank corporate lending rates of different maturities during 2010-2020. We find changes in the pass-through as policy rates first dip below zero in 2014 and again when negative interest rates become more persistent...
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