Negative Interest Rates
Five years ago, the Swiss National Bank decided to move the policy interest rate into negative territory. Since then, the public has repeatedly discussed the advantages and disadvantages of this new interest rate environment. In order to make the views of academically researching economists on negative policy interest rates visible to the public, the KOF conducted together with the external page Neue Zürcher Zeitung in November and December 2019 a survey about this topic.
For this survey 659 economists were contacted. Responses were received from 126 economists from 19 institutions.
Results
Monetary policy stance
How do you assess the current monetary policy stances of the following three central banks? Are the implemented monetary policy measures too expansionary, appropriate, or too restrictive?
a. For the United States of America, the current monetary policy stance of the U.S. Federal Reserve (Fed) is
b. For the euro area, the current monetary policy stance of the European Central Bank (ECB) is
c. For Switzerland, the current monetary policy stance of the Swiss National Bank (SNB) is
Negative interest rates
At the end of 2014, the SNB decided to move the policy interest rate into negative territory. Since then, the public has repeatedly discussed the advantages and disadvantages of this new interest rate environment. How do you assess the current use of the negative policy interest rate by the SNB?
Lower bound of the policy rate
How far can the SNB lower the policy interest rate before economic agents withdraw significant portions of their bank deposits and store them as cash? The lower bound for the policy rate is
Expected policy rate
The SNB policy interest rate has been in negative territory for about five years. Where do you see the SNB policy interest rate five years in the future? Its policy rate will be
Euro/Swiss franc exchange rate
How do you assess the current euro/Swiss franc exchange rate of about 1.10? The Swiss franc against the euro is currently
About this survey
KOF is acting as a mediator between academic researchers and the public. It aims to make the voices of research economists heard. KOF categorises economic researchers as those from Swiss research institutions who have published scientifically.
The survey was conducted together with the external page Neue Zürcher Zeitung.
Contact
KOF Konjunkturforschungsstelle
Leonhardstrasse 21
8092
Zürich
Switzerland