JPM's Stealey Says Next Recession May Need Negative Rates

The video discusses negative interest rates as a tool for economic slowdowns, highlighting their use by central banks like the ECB since 2014. It explores the benefits, such as lowering the yield curve and weakening the euro, and the drawbacks, including distortions in the financial sector. The discussion also covers the potential future use of negative rates, acknowledging the awareness of their negative consequences.

What is the primary purpose of introducing negative interest rates during an economic slowdown?

• To increase inflation

• To stimulate economic growth

• To strengthen the currency

• To reduce unemployment

Which central bank implemented negative interest rates in 2014?

• Bank of England

• Bank of Japan

• Federal Reserve

• European Central Bank

What was one of the effects of negative interest rates on the euro?

• It strengthened the euro against the dollar

• It had no effect on the euro

• It caused the euro to become more volatile

• It weakened the euro against the dollar

What is a potential negative consequence of negative interest rates?

• Financial sector distortions

• Increased inflation

• Higher unemployment

• Stronger economic growth

Why might central banks be hesitant to return to negative interest rates in the future?

• They have known negative consequences

• They are unpopular with the public

• They cause high inflation

• They are ineffective