Zero lower bound

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.

See also

• Discount rate
• Effective lower bound
• Interest on excess reserves
• Interest rate
• Keynesianism
• Monetary policy
• Money supply
• Nominal
• Open market operations
• Quantitative easing
• Reserve requirements
• Unconventional monetary policy
• ZLB problem