The Dangerous Ineffectiveness of Negative Interest Rates : the Case of Switzerland
- Rossi, Sergio Université de Fribourg
-
2019
Published in:
- Review of Keynesian Economics. - Edward Elgar Publishing Ltd. - 2019, vol. 7, no. 2, p. 220-232
English
This paper argues that the negative interest rate adopted by the Swiss National Bank in 2015 has elicited a series of negative consequences across the Swiss economy. It has led an increasing number of agents to invest their savings in the real-estate market, whose prices have overheated, threatening the eruption of a housing crisis. It has also induced a number of financial institutions to turn to riskier businesses in an attempt to continue to earn some returns, thereby increasing financial fragility at systemic level. The paper suggests that a small Tobin tax on all Swiss-franc purchases may contribute to the support of domestic economic activities much better than negative rates of interest.
- Faculty
- Faculté des sciences économiques et sociales et du management
- Department
- Département d'économie politique
- Language
-
- English
- Classification
- Economics
- License
- License undefined
- Identifiers
-
- RERO DOC 330579
- DOI 10.4337/roke.2019.02.07
- Persistent URL
- https://folia.unifr.ch/unifr/documents/309337
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