Negative Interest Rates - Explained: Monetary Policy

The video explores the concept of negative interest rates, their origins, and their impact on the economy. It explains the role of central banks in controlling interest rates and inflation, and how consumer spending and credit influence economic conditions. The video also discusses the measures taken by central banks post-financial crises to stimulate growth, including the introduction of negative interest rates.

Describe the consequences of raising interest rates on consumer spending.

What happens to the economy when central banks lower interest rates?

Discuss the implications of negative interest rates for commercial banks.