ESA Lecture - Negative Interest Rates: How low can you go?

Interest rates are low, but not low enough.  Some analysis suggests that, had it been feasible, the Federal Reserve should have cut interest rates to negative four per cent at the onset of the financial crisis.  The eurozone and Japan are similarly constrained.  There are, however, proposals that remove the impediments that these central banks continue to face.  An exchange rate between electronic money and paper money is one such proposal.

Dr Leon Berkelmans, the Lowy Institute's International Economy & G20 Studies Centre Program Director, will discuss how this proposal could be implemented along with some of the challenges the proposal faces.

This event is part of the monthly Economic Society of Australia's lunchtime lecture series.