This would reduce the risk of encountering the "zero lower bound" (ZLB) - the inability to cut interest rates to less than zero - when a central bank is trying to burst asset price bubbles and keep an economy from falling into recession.
Co-authors of the research Tim Robinson and Andrew Stone said the Bank of Japan had run into the ZLB sin
- Turkish central bank carries out emergency rate hike as currency falls
- BoE research says digital currency would ‘strengthen’ policy transmission
- US House passes deregulation bill with bipartisan support
- Brazil’s central bank launches fintech laboratory
- Is this the beginning of a new era of credit risk management technology?