Negative rates could lower inflation expectations – San Fran Fed paper

Interest rates on paper

Negative interest rates may lower inflation expectations, a paper published by the Federal Reserve Bank of San Francisco finds.

Jens Christensen and Mark Spiegel analyse the Bank of Japan’s (BoJ) negative rate policy and its impact on inflation expectations. They use the breakeven inflation rate, which they define as the difference between nominal and real yields on government bonds, as a gauge for inflation expectations. 

The authors find that after the BoJ introduced its negative rate policy

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: