RIP, ZLB


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.

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One thought on “RIP, ZLB

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