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Federal Reserve Bank of St. Louis
The Regional Economist
How low can you go? negative interest rates and investors’ flight to safety
Richard G. Anderson
Yang Liu
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.


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Richard G. Anderson & Yang Liu, "How low can you go? negative interest rates and investors’ flight to safety" , Federal Reserve Bank of St. Louis, The Regional Economist, issue Jan, 2013.
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Keywords: Interest rates ; Investments
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