The euro zone’s macroeconomic situation does not justify negative interest rates

The ECB has implemented negative interest rates and wants to lower them even further. Yet the euro zone’s macroeconomic situation does not justify negative interest rates: There is no deflation and nominal growth is around 3%; The unemployment rate is close to the structural unemployment rate and there are significant hiring difficulties; Wages and unit labour costs have picked up; The euro is undervalued in real terms. If the negative interest rates cannot be justified by the euro zone’s macroeconomic situation, then their justification must lie elsewhere: the determination to maintain fiscal solvency ; the refusal to take even the slightest risk with growth.