Negative Interest Rates and the ECB’s Brave New Credit World

While the US Federal Reserve is making significant efforts to prevent the money market rate from falling below zero with the help of so-called reverse repurchase agreements, negative interest rates are appearing in a number of the euro area’s financial markets. Why is this happening? And what does it mean for wealth and prosperity in the euro area? Prof. Dr. Gunther Schnabl and Nils Sonnenberg in the following contribution.