Saturday, August 24, 2019

Latest Post

Is there a Zero Lower Bound?

In a recent research, four European Central Bank economists found that negative interest rate policy in the eurozone can encourage banks to increase lending and encourage cooperations to increase investments.That is, contrary to what macroeconomics models usually predict, interest rate policy can still has stimulative effect even the zero lower bound is reached.

Where is the General Theory of the 21st Centruy?

Rodrik tells us that good economists think in terms of models, and there are major differences between models and theory. He also comments on macroeconomists quest on finding the "one true model" on the business cycle,

Further Discussed