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\nNegative Interest Rates - Explained: Monetary Policy\n

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\n\nPublisher:\n\nEconomics Explained\n\n\n
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\nIn July of 2009, The Central Bank of Sweden lowered its overnight deposit rate to negative 0.25% – effectively charging the country's retail banks to pay it to look after its money. At the turn of the millennia, negative interest rates...\nIn July of 2009, The Central Bank of Sweden lowered its overnight deposit rate to negative 0.25% – effectively charging the country's retail banks to pay it to look after its money. At the turn of the millennia, negative interest rates were somewhat of an economic fantasy: the same way that light-speed travel is a fantasy for theoretical physicists. Economists had speculated about what negative interest rates would mean, but nobody actually ever expected this phenomenon to exist in the real world. Today, negative interest rates dominate the market for sovereign bonds and are the staple of many central banks. But how in the world does this make sense? Who in their right mind would pay someone to take their money? ... all this and more in today's episode!

Helping you become more knowledgeable about how the world works, our content covers the biggest topics and headlines through the eyes of economists. The team explores a wide range of subjects improving your ability to understand the world more clearly.
This is economics, explained.

Negative Interest Rates: Explained Part 1\n
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Resource Details

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Educator Rating
Not yet Rated
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Media Length
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7:18
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Grade
9th - Higher Ed
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Subjects
Social Studies & History
3 more...
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Media Type
Instructional Videos
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Source:
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\nEconomics Explained\n\n
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Date
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2019
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Language
English
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Audiences
For Teacher Use
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Usage Permissions
Fine Print: Educational Use
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Concepts

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credit cards, credit, banks, interest, borrowing, sweden, economy, countries, money, inflation
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negative interest rates explained, the economics of negative interest rates, how do interest rates work, how do interest rates affect the economy, how do interest rates go below zero, how do interest rates go below 0, how do interest rates go negative, how do negative interest rates occur, how do interest rates impact the economy, interest rates negative, negative interest rates, interest rates explained, interest rates economics explained, economics explained, central bank, interest rate, buying power, home loans, rate, bank, control, spending, thing, price, suddenly, lower, people, means, borrow, exist, understand, confidence, happening, happy
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Best For: Explaining a topic
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