Revista OEconomica

Tudor Constantin BĂLAN - Cycles of Freedom: Are Our Rights Today Permanently Secured, or Are We in a Transitional Phase? The Cases of Great Britain, the United States, and Russia

Marius-Cristian PANĂ, Adela BĂLAN - Economic Freedom and Prosperity: A Comparative Analysis of Welfare Determinants at the International Level

Ana Octavia ALBU - When Accurate Forecasts Still Produce Waste: Demand Shocks and Over-Forecasting Risk in Food Retail

Adrian-Ioan DAMOC - The Persian Pivot and the Reconfiguration of Geopolitical Realism: Iran and Venezuela in Strategic Competition among the United States, China, and Russia

Emmanuel Olusegun STOBER - Coercive Diplomacy in the Gulf and the Limits of the Strike-Forward Strategy: Toward a Middle-Power Coalition for Regional Stability

Sorin-Nicolae CURCĂ - On the Informational Entropy of Economic Shock

Florin DĂNESCU - The Banking Sector as Critical Infrastructure in the Logic of Hybrid Conflict: Post-2014 Legislative Convergence in Central and Eastern Europe and the Case of Romania

Alexandru POPOVICI - The Contribution of the Music Industry to GDP and Employment: A Comparative Analysis

Mohammed AL-NASSERY - Implications of the War in the Middle East: An Analysis of the Economic, Security, Humanitarian, and Political Dimensions

Mihai LĂCĂTUŞ - GDP as a Means, Not an End: Inequality as the Missing Variable in Fiscal Policy Design – A 60-Country Analysis of Economic Growth and Subjective Well-Being

Articles on Issue Theme

Silviu CERNA

Universitatea de Vest din Timişoara

The emergence of negative interest reflects the reversal of the relationship between the value that people normally attribute to meeting certain needs today and the value they place on meeting the same needs in the future. Theoretically, this phenomenon is bizarre and mysterious. In practice, economic agents have adapted quite quickly to this absolutely unique context. Nevertheless, some important questions remain about the effectiveness of the negative interest rate as a monetary policy instrument. It was introduced with a specific goal: to relaunch economic growth. At this stage, however, it is not known whether this goal will be achieved or how this anomaly will disappear: suddenly or gradually, orderly or at the cost of economic and social unrest. This paper analyses the impact of negative interest rates on banks and on the stability of the financial system. The conclusion is that this phenomenon remains a challenge for the economic science.

ŒCONOMICA no. 3-4/2020

Keywords: banks, interest rates, monetary policy, natural interest rate

JEL: E43, E52, E58, G01, G21

The Negative Interest and Its Effects on the Financial System [Dobânda negativă şi efectele sale asupra sistemului financiar]

Select Issue: