Economic Recovery at Risk: Zero Interest Rate Dynamics Unveiled.
Global Dynamics at the Zero Lower Bound presents solutions to economic models to understand how things change when interest rates are stuck at zero. The researchers looked at different scenarios and found that when interest rates are at zero, the response to certain shocks can have unexpected effects on the economy. They also found that the type of monetary policy in place can affect how likely it is for interest rates to hit zero. This suggests that if interest rates stay at zero for too long, the economy might struggle to recover.