Banks Quote by Charles L. Evans
“Negative interest rates have been employed by many, many central banks.”
About This Quote
Source Speech: Remarks at Federal Reserve Bank of New York, 2015
Central banks sometimes set rates below zero to stimulate borrowing and spending when traditional tools are exhausted.
In simple terms: Banks use negative rates to boost economy when normal rates are too low.
Consider how policy tools adapt to economic conditions.
Themes
Mood
Type
When to use this quote
- banking sector
- government debt management
- investment decisions
Key Concepts
Questions to Reflect On
- How do negative rates affect everyday savers?
- What alternatives exist for stimulating growth?
Negative rates can hurt savers and may lead to asset bubbles.