Drawing on theoretical arguments and empirical research, explain in detail the efficacy of the negative interest rate policy (NIRP) that has been undertaken by certain central banks. Also evaluate whether such a policy would have any adverse effect on the banking sector.

Drawing on theoretical arguments and empirical research, explain in detail the efficacy of the negative interest rate policy (NIRP) that has been undertaken by certain central banks. Also evaluate whether such a policy would have any adverse effect on the banking sector.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Drawing on theoretical arguments and empirical research, explain in detail the efficacy of
the negative interest rate policy (NIRP) that has been undertaken by certain central banks.
Also evaluate whether such a policy would have any adverse effect on the banking sector.

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