Modern Interest Rate Policy and the Phenomenon of Negative Interest Rates

Central bank interest policy: conceptual concepts and socio-economic context

“…A negative interest rate has limitations and usually does not go beyond minus one percent. It is generally accepted that when a negative interest rate is reached, the economy stimulation based on the use of interest rates exhausts itself, and the transition to the economy stimulation by the money supply expansion also has its limits, since this leads to inflation increase, which gives rise to a set of social-economic problems (BURLACHKOV, 2016;PRUDNIKOVA, NIKOLAENKOVA, 2016).…”