ANALYSIS OF THE EFFECT OF NEGATIVE INTEREST RATE POLICY ON INFLATION AND GROSS DOMESTIC PRODUCT IN DENMARK AND SWEDEN

Abstract

The first half of 2014, the Danish Central Bank adopted a negative interest rate policy. Then in early 2015, the Central Banks of Switzerland, Sweden and the European Union also adopted easy monetary policies. Both in terms of theory and practice, monetary policy with negative interest rates is common. This policy was taken from interest rates this year which have been approved at zero percent. While at the same time further stimulants in growth are needed to encourage economic growth, which is still at its lowest point. The research method used is a quantitative method with non Parametric Kendall's_b Tau statistical test. The results showed that, the effect of negative interest rate policies on turnover and GDP was not significant, except the effect of negative interest rates on the country of Sweden which was significant but with a negative direction of opposition. In terms of conversion coefficients, they are entirely above at very weak or low levels. Associated with negative interest rates on countries in Sweden with low or weak coefficients. With insignificant influence in general, it is very important for the Central Bank not to focus on quantitative policies that are often carried out with complex, as well as qualitative support to uphold the message of justice and togetherness in the financial and monetary system.