The impact of negative interest rate policy and its effectiveness of stimulating economic growth

Perry Li
University of Minnesota
Friday, November 22, 2019 - 5:30pm to 6:30pm
Vincent Hall 16

According to the Bloomberg Barclays Global Aggregate Index, there were $17 trillion (or 30%) bonds traded with negative yields within that popular fixed income benchmark, at the end of August 2019. Government bonds in Germany, Japan, and Switzerland all carry negative yields - meaning investors will lose money to hold them to maturity. How did we get here? Are those policies introduced by global central banks, after the 2008 financial crisis, effective (to spur inflation)? In this talk, I seek to use some case studies like reserve banking system, asset bubbles, and “currency war” to explore this topic.Bio: https://www.linkedin.com/in/liyuepeng/