Five Mysteries Surrounding Low and Negative Interest Rates

摘要

At first glance, Five Mysteries Surrounding Low and Negative Interest Rates, published the Spring 2017 issue of The Journal of Portfolio Management, looks like an overview of current academic thinking on low-to-negative nominal interest rates, their causes, and their consequences, while debunking current popular wisdom on the same topics. On closer examination, the article also cautions practitioners against taking extreme measures in what may appear to be extreme times, finding that the so-called "mysteries" of negative rates can mostly be demystified by solid application of familiar economic theory.