Grading the Negative Rate Experiment

A panel of economists responded to this challenge in the Spring Edition of  “The International Economy”. The panelists assessment were almost evenly divided between “A” and “F”  with an equal balance of division across all the letters in between. William White aligned himself with those giving an “F” ranking. While negative rates did not lead to the catastrophic outcomes suggested by some, they constituted an extension of the ultra-easy monetary policies in place since the Great Financial Crisis. White believes these policies were fundamentally misguided, leaving us exposed to both “financial dominance” and “fiscal dominance”.

InternationalEconomyGrading the Negative Rate ExperimentJune 2024