Negative Interest Rate Policy:
- is a fiscal policy which government uses to affect the economy
- aims to reduce inflationary pressure in the economy
Which of the above statements is/are correct?
First statement is incorrect because it is an unconventional monetary policy tool exercised by central bank of a country. Second statement is again incorrect because negative interest rate policy is used to curb the problem of deflation.
This question is a part of GKToday's Integrated IAS General Studies Module