SF Fed, Report: The Transmission of Negative Nominal Interest Rates in Finland

“Taken together, the results in this paper show that the effectiveness of monetary policy during the negative policy rate period was likely diminished, but did not disappear. They lend credence to the usage of negative nominal interest rate policies by central banks. Although the negative rate policy lasted for years, the policy rate did not become very negative during our sampling period. While the limits of negative interest rate policies are beyond the scope of this paper, these are interesting questions for future research that have important policy implications.”