Monetary Policy - Monetary Policy and Aggregate demand - the zero lower bound problem
4 important questions on Monetary Policy - Monetary Policy and Aggregate demand - the zero lower bound problem
Why is negative interest rates a problem?
so no bonds bought.
What is the rules that interst rates cannot fall below zero without causing significant problems?
How to fix the issue with the inability to reduce interest rates further.
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What is a monetary policy in which a government tries to drive down interest rates? What effect does this have on the economy?
thus exerting an expansionary effect on the economy, by buying longer term bonds instead of shorter term bonds.
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