Negative interest rates for the euro area?

What should central bankers do to combat the current recession? Some economists do not rule out negative interest rates - or at least argue that standard monetary policy tools would suggest negative rates given the massive declines in economic output and the presence of deflationary pressure in the aftermath of the credit crisis that started in 2007. For example, Glenn Rudebusch, an economist at the Federal Reserve Bank of San Francisco, argues in a widely discussed paper using the well known

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