Why does the self-correcting mechanism stop working when the policy rate hits the zero lower bound?

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The Economics Of Money Banking And Financial Markets

ISBN: 978-0134376936

6th Canadian Edition

Authors: Frederic S Mishkin ,Apostolos Serletis

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Question Posted: Nov 14, 2024 03:01 AM

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Why does the self-correcting mechanism stop working when the policy rate hits the zero lower bound?
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Why does the self-correcting mechanism stop working when the policy rate hits the zero lower bound?
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Why does the self-correcting mechanism stop working when the policy rate hits the zero lower bound?

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The Economics Of Money Banking And Financial Markets

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