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2 posts on "zero lower bound"
July 7, 2025

The Zero Lower Bound Remains a Medium‑Term Risk

Sophia Cho, Thomas M. Mertens, and John C. Williams

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Interest rates have fluctuated significantly over time. After a period of high inflation in the late 1970s and early 1980s, interest rates entered a decline that lasted for nearly four decades. The federal funds rate—the primary tool for monetary policy in the United States—followed this trend, while also varying with cycles of economic recessions and expansions.

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Posted at 1:00 pm in Fed Funds, Financial Markets, Monetary Policy | Permalink | Comments (0)
November 16, 2011

Why Is There a “Zero Lower Bound” on Interest Rates?

Economists often talk about nominal interest rates having a “zero lower bound,” meaning they should not be expected to fall below zero.

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Posted at 7:00 am in Monetary Policy | Permalink | Comments (2)

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