The Implications of Ultra-Low and Negative Interest Rates for Asia | Asian Development Bank

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The Implications of Ultra-Low and Negative Interest Rates for Asia

Publication | February 2018
The Implications of Ultra-Low and Negative Interest Rates for Asia

Asia has been uniquely affected by low and negative global interest rates. This volume explores these effects—from foreign direct investment and portfolio investment, to exchange rate effects, credit availability, and more.

Twenty years after the East Asian financial crisis, Asia is facing challenges as advanced economies implement unprecedented low and negative interest rate policies to jumpstart moribund economies and avoid deflation. As the longer ends of yield curves in many advanced economies plunge into negative territory, fears are growing that these policies may create unintended side effects, including cash hoarding, housing bubbles, and damage to banks’ balance sheets. It has long been argued that Asian financial markets are influenced more by the monetary policies of advanced economies than their own, so Asia may be affected disproportionally by volatile swings of currencies, international capital flows, and debt levels.

This edited volume brings together scholars, policy makers, and financial market practitioners from all over the world to explore the implications of ultra-low and negative interest rates for Asian economies.

Edited by: Naoyuki Yoshino, Pornpinun Chantapacdepong, and Stefan Angrick

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