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Jakarta Post
The Jakarta Post
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DKI Jakarta, Indonesia
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Failure of negative nominal interest rates

  • Christopher Lingle

Guatemala City, Guatemala | Fri, September 23 2016 | 09:07 am

PREMIUM Central bankers around the world have been playing “follow the leader” when it comes to monetary policy. To this end, Bank Indonesia has been operating in lock step with the US Federal Reserve policies that have been suppressing interest rates ever closer to, and below, zero.

Monetary policy is partly guided by a belief that lowering the cost of borrowing and the returns on bonds will l...