“No matter what the policy goal of negative rates may be across countries, the impact and implications of negative policy rates remain uncertain.” Charles Mounts, John Kingston et al
In the period of financial crisis, national banks could use very unusual methods. One of the recent and unusual decisions was to lower interest rates below zero. The intention was to make the investment more appealing for the investors rather than put the funds on the account, waiting for the better time to invest, and lose money instead of gain the interest income. The issues that are supposed to be solved by this decision, could be, for example, to control the inflation, currency appreciation, maintain economic growth, etc. (Charles Mounts, John Kingston et al, 2016)
But according to the recent research by S&P Global, controlling the outcome of this decision could be unpredictable. The findings claim, that negative interest rate policy was successful in European countries, but not in Japan. The reason could be the political and social conditions, which according to the article, complicate using the fiscal policy as a lever to impact on the economy. (Charles Mounts, John Kingston et al, 2016).