JEEA-FBBVA Lecture 2025, Madrid, Spain

Silvana Tenreyro will give the 2025 JEEA-FBBVA lecture - Negative Interest Rates and the Impact of Monetary Policy - at the FBBVA headquarters in Madrid on Wednesday, May 21 at 18:00 CET

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, Silvana 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.

The lecture will be chaired by Soledad Núñez and Philip R. Lane will act as discussant. 

EEA has a limited amount of travel funds available for PhD students at Spanish institutions who wish to attend the lecture. If you wish to take advantage, please email us through admin@eeassoc.org

There is no registration fee. Please confirm your attendance by writing to COMING SOON