Abstract:

The debt of the European population has rapidly increased. Slovakia has the fastest rate of indebtedness in EU. The scope of this article was to evaluate how accurate are GDP growth indicators in reality and how people are affected by it. ECB has applied long term negative interest rates on deposit (-0,4%). This action pushes commercial banks´ excess cash into the economy in effort to keep inflation rate steady. The second part of the article is focused on the effectiveness of negative interest rates as a stimulating tool for GDP growth and controlling inflation below the 2% threshold.