Journal Article

How low can you go? negative interest rates and investors’ flight to safety


Abstract: It is not uncommon to observe negative interest rates during uncertain times, when investors flee to safety. But the existence of negative market yields provides no support for policies in which central banks set negative interest rates on deposits held at a central bank.

Keywords: Interest rates; Investments;

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Provider: Federal Reserve Bank of St. Louis

Part of Series: The Regional Economist

Publication Date: 2013

Issue: Jan