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Institutional Features of the ECB Negative Interest Rate Policy

Institutional Features of the ECB Negative Interest Rate Policy

Journal of Institutional Studies, , Vol. 11 (no. 1),

In this work the research of the negative interest rate policy of the ECB has been conducted. The study explores the motivation of the ECB to moving towards a policy of negative interest rates, studies of the current experience of the ECB in applying this policy, highlights the specific features of this policy measure for the Eurozone, in particular, for its banking system. The analysis that was carried out from the work made a drawing of a number of conclusions possible. The institutional features of the Eurozone not only made it possible for the ECB to use the new measure of the monetary policy, they determined specifics of the implementation of the ECB of this measure. They also determined the response of the Eurozone economy to this policy. An analysis of the experience of applying the negative interest rate policy of the ECB confirmed the assumption that the application of a new non-standard policy measure (a negative interest rate policy) continued the implementation of the ECB’s old monetary policy strategy: the use of non-standard measures for improving the standard monetary policy impact mechanism.

Keywords: negative interest rate policy; institutional features; ECB monetary policy

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