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Investment Under Negative Interest Rate


Professor Jialin Yu, the Associate Professor of Finance at Hong Kong University of Science and Technology, delivered a speech about when nominal interest rates are negative for the currencies EUR, JPY, CHF.

Most, if not all, of the portfolio theory is based on a nominal rate above zero. There is virtually no historical data in which nominal rates are negative across a number of major currencies. Professor Yu shared his point of view on the implications of negative rate for today's investment climate.

During the talk, Professor Yu:

  • explored and quantified the effect of negative rates on investment and consumption

  • highlighted a "danger zone" where past experiences under a positive rate did not hold

  • discussed whether the negative rates will accomplish the intended policy goals

About the Speaker

Professor Jialin Yu is Associate Professor of Finance at the Hong Kong University of Science and Technology. Before joining HKUST, he was an associate professor at the Graduate School of Business at Columbia University. He has been a visiting associate professor at Princeton University. He holds Ph.D. degree in Economics from Princeton University, and a bachelor’s degree in Economics from Fudan University.

Professor Yu's research focuses on investments, behavioral finance, and Asian financial markets. His research articles have been published in the American Economic Review, Journal of Finance, Journal of Financial Economics, among others. His research was cited in the scientific background of the 2013 Nobel Prize in Economic Sciences. He has received grants and awards from Morgan Stanley, KPMG, Government of the Hong Kong SAR, and the Sun Yefang Economic Science Foundation, among others. He has received recognition for his excellent teaching in the MBA program from HKUST.


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