Marvin Goodfriend Explains How Negative Rates Can Work

The transcript discusses the concept of negative interest rates, their impact on banks, depositors, and pension funds, and the skepticism surrounding their effectiveness. It explores global experiments with negative rates, particularly in Europe and Japan, and the challenges faced by small economies like Sweden and Switzerland. The discussion also touches on currency issues and the potential future use of negative rates during economic crises.

What are the implications of negative interest rates for commercial banks?

How do negative interest rates affect retail depositors according to the discussion?

What challenges do banks face in a regime of negative interest rates?

What historical context is provided regarding the justification for quantitative easing?

What are the potential effects of negative interest rates on pension funds?

What concerns are raised about the public perception of negative interest rates?

In what scenarios might negative interest rates be effective according to the discussion?