Negative interest rates

Over recent years, central bankers of the world have tried several conventional measures to revive economic growth in the aftermath of the Great Recession and re-establish trust in the financial system, but they have not reaped the results they were hoping for. A few of them decided to go beyond conventional measures and venture into unchartered territory by setting interest rates below zero, hoping that the measure would help them fight the recessionary environment. There are no guarantees that aggressive monetary policies such as introducing negative interest rates will be the solution for economic revival, especially since governments and politicians have partially ignored the importance of fiscal tools that go hand in hand with monetary tools. How interest rates impact price levels, currency power and economic activity Interest rates are the price of money; in other words the price of consuming today versus tomorrow. Depositors will have an incentive to