negative interest rate lending ripple effects
Decreasing the nominal interest rate to a negative value will cause businesses to have to raise their prices in order to maintain 0 economic profit. This is because wages are "sticky," and cannot change in a general quarterly or annual period.  People who live in the country have not been given any higher incentive to spend, but since prices are increased - aggregate demand will decrease.  Additionally, in order to survive the cut in demand and rise in prices, firms will look to lay off workers - raising unemployment.  Consumption should decrease as a result of a negative interest rate charged by the Central Bank.  In what was an attempt to increase GDP - output will decrease.  --> Stagflation is likely to occur