NIRP and Narrow money: Difference between pages

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Abbreviation for Negative interest rate policy
''Economics.''
A category of money supply which includes all physical money (coins and currency) plus demand deposits and other liquid assets held by the central bank.


NIRP is a policy of a central bank to keep (short-term) interest rates in the economy as low as may. It effects this by reducing its own interest charges for borrowings by financial institutions or its payments of interest on deposits taken from those instructions not merely to a 0% nominal rate but to some actually negative nominal rate.
The classifications of narrow money vary between different jurisdictions. In the US narrow money is M1 (M0 + demand accounts), while in the UK M0 is termed narrow money.


Note that the [[real interest rate]] in the economy may be negative or positive irrespective of the nominal rate being negative, it being the difference between rate of inflation in the economy and interest rates paid or received.
== See also ==
* [[Broad money]]
* [[M0]]
* [[M1]]


==See also==
* [[ZIRP]]

Revision as of 14:20, 23 October 2012

Economics. A category of money supply which includes all physical money (coins and currency) plus demand deposits and other liquid assets held by the central bank.

The classifications of narrow money vary between different jurisdictions. In the US narrow money is M1 (M0 + demand accounts), while in the UK M0 is termed narrow money.

See also


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