Discover and read the best of Twitter Threads about #repullo
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Today I gave a speech on the @ecb’s negative interest rate policy (NIRP) at the @EEANews Annual Congress in a panel with @helene_rey, Tobias #Adrian & Rafael #Repullo. In the speech, I could draw on fantastic ECB research, featuring @AngelaMaddaloni , @fheider & many others. 1/6
The NIRP helped to shift the perceived lower bound on interest rates into negative territory, supported by forward guidance that left the door open for further rate cuts. The zero lower bound was transformed into an effective lower bound below zero. 2/6 
NIRP contributed to shifting € area sovereign yields down across the maturity spectrum. Due to a “hot potato effect”, NIRP compresses the term premium, reinforces the effects of asset purchases & supports bank lending. All these effects have improved monetary transmission. 3/6
