Negative interest rates

We explore the impact of low and negative monetary policy rates in core world economies on bank lending in four small open economies – Canada, Chile, the Czech Republic and Norway

Such a development has raised several questions such as: what constitutes optimal monetary policy when a small open economy finds itself in a liquidity trap situation, where

The aim of liquidity policy is to ensure that banks always have sufficient deposits in Norges Bank so that short-term money market rates remain just above the interest rate on

In its conduct of monetary policy, norges Bank manages banks’ central bank deposits to ensure that the level of short- term money market rates is close to the key policy rate set

Three-month money market rates for Norway’s trading partners.. Policy rates in selected

To mitigate the effects of the financial crisis, central bank key rates were cut sharply in 2008 and are still close to zero in a number of countries.. The key policy rate in

Central banks must nevertheless form a perception of how expansionary or contractionary monetary policy is and of the interest rate that is consistent with balance in the

I use a model with sticky prices, optimizing agents and money in the utility function to derive the exact analytical solution for optimal monetary policy given a zero lower bound