Online ISSN 2286-0266
Print ISSN 1223-0685
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Œconomica by SOREC
 
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]