Economics, Econometrics and Finance
8 years ago

Zero Interest Rates in Canada Could Revolutionize Monetary Policy Strategies

RePEc: Research Papers in Economics
The Zero Bound on Nominal Interest Rates: Implications for the Optimal Monetary Policy in Canada
Claude Lavoie, Hope Pioro

Paper Summary

The article examines how the Canadian economy performs under different interest rate rules when interest rates are stuck at zero. The researchers used a model to simulate different scenarios. They found that when interest rates are at zero, there are challenges for monetary policy in Canada.

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