Zero-Bound

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August 24, 2024 4 min read Definitions

Zero-Bound: Definition, Purpose, Mechanism, and Examples

Economics Finance Monetary Policy Zero-Bound Monetary Policy Central Banks Interest Rates Economic Stimulus

Zero-Bound is an expansionary monetary policy tool utilized by central banks to stimulate economic growth by lowering short-term interest rates to zero or near-zero levels. Discover its definition, objectives, functioning, and real-world applications.

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