Negative Interest Rate Debate: Rogoff vs. Posen

The transcript discusses the effectiveness of negative interest rates, highlighting their success in small, open economies like Switzerland and Denmark, but challenges in larger economies like Japan and Italy. It emphasizes the need for a robust framework to implement negative rates effectively, considering institutional and cultural factors. The conversation also touches on the role of central banks, global economic imbalances, and the specific challenges faced by the ECB in Europe.

In what ways do small open economies differ from larger economies regarding capital flows and negative rates?

What are the potential consequences of negative interest rates on the real economy?

What factors contribute to the slow growth observed in the global economy post-crisis?