A man walks past the Bank of Japan headquarters in Tokyo on January 29, 2016, the day Haruhiko Kuroda, the central bank governor, surprised investors by adopting a negative interest rate strategy to spur banks to lend in the face of a weakening economy. Photo:Bloomberg
Andrew Sheng
Opinion

Opinion

Andrew Sheng

Advanced economies swallowing negative interest rates with glee must remember this is not a cure for depression

  • Negative interest rates have not encouraged spending and have fuelled inequality. Instead of relying on central bankers to tweak monetary policy, governments must initiate structural reforms. However, with a global slowdown in the offing, this is unlikely to happen
A man walks past the Bank of Japan headquarters in Tokyo on January 29, 2016, the day Haruhiko Kuroda, the central bank governor, surprised investors by adopting a negative interest rate strategy to spur banks to lend in the face of a weakening economy. Photo:Bloomberg
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