New interest rate rules can break free from economic stagnation
The article explains how certain interest rate rules can help prevent economic downturns in a specific type of economy. By following a particular pattern of adjusting interest rates, the economy can avoid harmful situations like deflation. The key is to start with zero interest rates for a while, then switch to a different rule. This method can lead to the best outcome for everyone involved. The rules discussed in the article don't require major changes to how central banks operate and don't rely on certain inflation-increasing strategies.