Ruchir Agarwal and Miles Kimball—Enabling Deep Negative Rates to Fight Recessions: A Guide

My latest paper with Ruchir Agarwal on negative interest rate policy is out as an IMF Working Paper: “Enabling Deep Negative Rates to Fight Recessions: A Guide.” If you read one thing about negative interest rate policy, read this paper. I do have to warn you that it is quite a long paper! Ruchir and I tried to be as comprehensive as we knew how on issues around negative interest rate policy without getting too formal. (Our next priority is precisely to do more formal modeling.)

If you want to start by reading or listening to something shorter, or want more after you have finished this paper, take a look at the links and other resources in my bibliographic post “How and Why to Eliminate the Zero Lower Bound: A Reader’s Guide.” This is the post my “Neg Rates” link at the top of my blog goes to. I just updated it.

We thank many people for giving us helpful comments on early drafts of the paper. In terms of the magnitude of contribution to how the paper turned out, Ken Rogoff, Matt Rognlie and seminar audiences at Harvard, MIT, Brown and BU in Fall 2018 had the biggest impact on the paper.

Let me say something strong: No one should pretend they know what they are talking about in relation to negative interest rate policy without having read this paper. Anyone who does read it and wants to offer a critique to what we wrote, Ruchir and I will take seriously.