Zero lower bound: Difference between revisions
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imported>Doug Williamson (Expand definition.) |
imported>Doug Williamson (Add alternative abbreviation.) |
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For example, the European Central Bank fixed a negative rate in 2014 for interest on excess reserves. | For example, the European Central Bank fixed a negative rate in 2014 for interest on excess reserves. | ||
Sometimes expressed as Zero Nominal Lower Bound (ZNLB), emphasising that the rates in question are conventional nominal interest rates (rather than inflation adjusted 'real' rates). | |||
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* [[Open market operations]] | * [[Open market operations]] | ||
* [[Quantitative easing ]] | * [[Quantitative easing ]] | ||
* [[Real]] | |||
* [[Reserve requirements]] | * [[Reserve requirements]] | ||
* [[Unconventional monetary policy]] | * [[Unconventional monetary policy]] | ||
Revision as of 14:30, 8 June 2020
Monetary policy - interest rates.
(ZLB).
Zero lower bound is an assumption that interest rates should not be, or cannot be, lower than zero.
In practice, a number of central banks have implemented negative official interest rates.
For example, the European Central Bank fixed a negative rate in 2014 for interest on excess reserves.
Sometimes expressed as Zero Nominal Lower Bound (ZNLB), emphasising that the rates in question are conventional nominal interest rates (rather than inflation adjusted 'real' rates).
