Study shows Fed deflation tools can work

The Federal Reserve has several ways to boost the economy even if official U.S. interest rates were ever to hit zero, but the public needs to understand them to make them effective, a new Fed study shows.

Two researchers at the Federal Reserve's Board of Governors used the U.S. central bank's economic model to evaluate some strategies that economists have suggested to get around the fact that rates cannot fall into negative territory.

"Many of the proposals for dealing with the zero bound rely

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