Digital currencies – sometimes called cryptocurrencies – are suddenly much in the news. What is behind this, and what is the future for this new form of finance?
For many years it was assumed that official interest rates, as set by central banks, could not go below zero. In recent years this rule – the “Zero Lower Bound” constraint, as it was known – has been decisively broken. How does monetary policy work in the brave new world of negative official interest rates, and what are the longer term implications?