Global Economy Lecture 2025 - Save the date
05 November 2025 4:00 pm CET
A link for registration will follow soon
In cooperation with:
Oesterreichische Nationalbank (OeNB)
Venue
Oesterreichische Nationalbank (OeNB)
Otto-Wagner-Platz 3
1090 Vienna
'Veranstaltungssaal' (ground floor)
Description
Negative Rates and the Effective Lower Bound
As inflation falls back and policy interest rates are reduced, central banks in many advanced economies may have to confront again the question of where the effective lower bound (ELB) on policy rates lies and the appropriateness of different monetary policy tools, including negative (nominal) interest rates. In the first era of negative rates before the Covid pandemic, no clear consensus on their effectiveness emerged. In this lecture, Prof. Tenreyro will bring together empirical findings, insights from theoretical models of the ELB, and real-life concerns of monetary policy makers about possible side effects on the banking system. Overall, while negative rates pose some practical challenges, the body of analytical work suggests that they should be effective monetary policy tools over a reasonable range, particularly so in small open economies and in economies where market-based finance plays an important role in credit intermediation.
Speaker
Silvana Tenreyro, FBA, CBE
Professor of Economics
London School of Economics and Political Science
Introduction
Robert Holzmann
Governor
Oesterreichische Nationalbank
Chair
Robert Stehrer
Scientific Director
The Vienna Institute for International Economic Studies (wiiw)
If you would like to notify OeNB of any address changes or if you would like other interested experts to receive a personal invitation, please contact the OeNB’s event management by e-mail at event-management@oenb.at.