International Journal of Education and Social Science (IJESS)

So far, many central banks have implemented negative interest rate policies. As an unconventional monetary policy, negative interest rate policy is not a simple replacement of other monetary policies, but a plugging and continuation of front-end monetary policy. Through the research on the practice and theory of negative interest rate policy, this paper finds that under the current global economic and financial situation, negative interest rate policy still has the space and potential to exert power. However, as negative interest rate policy also has inherent limitations and uncertainty of policy effect, the disadvantages of negative interest rate policy will become increasingly obvious, and negative interest rate policy may be replaced by innovative monetary policy or used in conjunction with new monetary policy.