Q Since the last recession (2007-2008) interest rates haven't recovered much... Which is a kind way to put "the Fed left rates low and there they stayed". With another recession eminent -- not eminent in the sense that it's going to happen tomorrow, just eminent in the sense we know it's going to happen, I wanted to consider the zero lower bound problem. In short, interest rates cannot fall much below zero. Consider Ben Bernanke's take on the problem: https://www.brookings.edu/blog/ben-bernanke/2017/04/13/the-zero-lower-bound-on-interest-rates-how-should-the-fed-respond/ (Links to an external site.)Links to an external site. PDF available here . Does the zero lower bound seem like a problem in your view? How would you handle it? Add your initial thoughts by Friday and follow-up posts by Sunday.
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