Is monetary policy less effective in boosting aggregate demand and output during periods of
persistently low interest rates? This paper reviews the reasons why this might be the case …

To overcome the limits on traditional monetary policy imposed by the effective lower bound
on short-term interest rates, in recent years the Federal Reserve and other advanced …

We analyse the impact of standard and non-standard monetary policy on bank profitability.
We use both proprietary and commercial data on individual euro area bank balance-sheets …

A safe asset is a simple debt instrument that is expected to preserve its value during adverse
systemic events. The supply of safe assets, private and public, has historically been …

We show that maturity transformation does not expose banks to interest rate risk—it hedges
it. The reason is the deposit franchise, which allows banks to pay deposit rates that are low …

Exploiting confidential data from the euro area, we show that sound banks pass negative
rates on to their corporate depositors and that pass-through is not impaired when policy …

We investigate the bank lending channel of negative nominal policy rates from an empirical
and theoretical perspective. For the empirical results, we rely on Swedish data, including …

We show that negative policy rates affect the supply of bank credit in a novel way. Banks are
reluctant to pass on negative rates to depositors, which increases the funding cost of high …

Interest rates in many advanced economies have been low for almost a decade now and are
often expected to remain so. This creates challenges for banks. Using a sample of 3385 …

We present a new channel for the transmission of monetary policy, the deposits channel. We
show that when the Fed funds rate rises, banks widen the spreads they charge on deposits …