For those of you who have followed me, you no doubt know how I feel about the concept of the monetary policy impotency at the zero lower bound on nominal interest rates (hint: not too highly).

Turns out I am in good company:

[Click Image to Enlarge]

The only economist that answered in the negative making a liquidity trap argument was Robert Hall.

I would be very interested to hear a lucid exposition of Paul Krugman’s current views regarding this question.

Update: Scott Sumner and Marcus Nunes have more on Robert Hall.


One thought on “RIP, ZLB

  1. I used to be suggested this blog via my cousin. I’m no longer certain whether or not this publish is written by him as no one else know such distinctive approximately my difficulty. You are wonderful! Thank you!

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