Monetary policy at the zero lower bound

Does monetary policy really face a zero lower bound or could policy rates be pushed materially below zero per cent? And would the benefits of reforms to achieve negative policy rates outweigh the costs?

A column in Vox, which reports the views of the leading UK-based macroeconomists, including the School’s Professor Jagjit Chadha, suggests that there is no strong support for reforming the monetary system to allow policy rates to be set at negative levels. Click here to read the full article…