Features of using negative interest rates in monetary policy in conditions of liquidity trap

In the context of an extremely high degree of uncertainty faced by the global financial system today, national financial regulators are placing significant emphasis on the monetary policy they implement. Given that one of the key tools of monetary policy is the interest rate, it is particularly important to explore the possibilities and impacts of various types of rates. This article analyzes the features of using negative interest rates in monetary policy under conditions of a liquidity trap and conducts an empirical analysis of their effectiveness as a tool for stimulating the economy and transforming key macroeconomic indicators in Japan, the EU, and Sweden. The study identifies the positive and negative effects of negative interest rates, including their corresponding impact on lending, financial stability of national economies, and consumer habits. Conclusions are drawn regarding the use of interest rates as a tool of monetary policy in both the short and long term.