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Banks Quote by Charles L. Evans

“Negative interest rates have been employed by many, many central banks.” quote by Charles L. Evans
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“Negative interest rates have been employed by many, many central banks.”

Charles L. Evans

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.

Key Takeaway

Consider how policy tools adapt to economic conditions.

Themes

monetary policy interest rates economic stimulus

Mood

cautious analytical

Type

economic policy

When to use this quote

  • banking sector
  • government debt management
  • investment decisions

Key Concepts

deflation liquidity trap financial markets

Questions to Reflect On

  • How do negative rates affect everyday savers?
  • What alternatives exist for stimulating growth?
A Different Perspective

Negative rates can hurt savers and may lead to asset bubbles.

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