SAFE Policy Lecture: Andreas (Andy) Jobst
Title: Negative Interest Rate Policy: Implications for Monetary Transmission and Financial Stability
Speaker: Andreas (Andy) Jobst (Adviser to the Managing Director and CFO of the World Bank Group)
Moderator: Jan Pieter Krahnen (SAFE and Goethe University)
Abstract: More than two years ago the European Central Bank (ECB) adopted a negative interest rate policy (NIRP) to achieve its price stability objective. Negative interest rates have so far supported easier financial conditions and contributed to a modest expansion in credit, demonstrating that the zero lower bound is less binding than previously thought. However, NIRP involves striking a difficult balance between (i) unconventional policy measures to support aggregate demand in the context of "lowflation" and (ii) potentially adverse effects on the bank lending channel and long-term investment. The presentation provides an assessment of the effectiveness of NIRP to date and offers some considerations for monetary policy going forward.
Andreas (Andy) Jobst is Adviser to the Managing Director and CFO of World Bank Group with responsibility for the development and implementation of sound and effective financial policies. Prior to his recent appointment in September 2016, he was Senior Economist in the European Department of the International Monetary Fund (IMF), in charge of monetary policy and financial sector/capital market surveillance of the euro area. After joining the Fund in 2005 as mid-career economist, Mr. Jobst also served as one of the main authors of the Global Financial Stability Report (GFSR) and, inter alia, led the stress testing exercises (solvency/liquidity) as part of the Financial Sector Assessment Program (FSAP) for several systemically important countries. During a three-year leave of absence between 2011 and 2014, he was Chief Economist and Deputy Director (Supervision) of the Bermuda Monetary Authority (BMA). Mr. Jobst previously worked for several years at the Federal Deposit Insurance Corporation (FDIC), the Deutsche Bundesbank, the European Central Bank (ECB), the Bank of England, and Deutsche Bank (London). He also has an academic connection to Frankfurt, having worked as teaching assistant and research officer at the Goethe University on a DFG grant in 2002 and 2003. Andy Jobst holds a PhD from the London School of Economics (LSE) and was also educated at Oxford and Cambridge.