A standard part of the standard Keynesian economics of our day is that fiscal policy becomes necessary at the zero lower bound. However, this standard part of the standard theory rather falls apart if ...

In monetary policy, zero is an important number. Nominal interbank interest rates cannot normally sink below zero—that would mean one bank was paying the other to borrow its money. This is known as ...

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation We study the transmission of changes in the believed location of the lower bound to longterm interest rates since the ...

Interest rate derivatives—financial investments whose value depends on interest rates—provide useful information about the risk of short-term rates falling again to the zero lower bound. According to ...

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Hey, nobody said monetary policy was easy, but we can’t remember when it’s been more interesting. Here are two ...

In response to the COVID-19 pandemic, the Federal Reserve cut the federal funds rate to essentially zero. It took further measures to support the functioning of financial markets and the flow of ...