Talk:Zero interest rate policy

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Krugman does not deserve credit for this idea. I am astounded that he can be attributed with this.

Yes, this has nothing to do with Krugman, and the thesis that such economies are in a liquidity trap was noted by Keynes in 1936, and has been noted repeatedly since then. What to do when you've already lowered the interest rates as low as they can go, but it still seems like you should lower tham further (the "0% bound") is a topic that has come up numerous times in Keynsian economics dating back to Keynes himself, with dozens of different analyses coming to different conclusions about what can be done and how effective doing it will be. --Delirium 09:42, May 9, 2005 (UTC)

Well, if Krugman doesn't deserve the credit, then someone should edit the Paul Krugman page, since he is described as the "main architect" of the ZIRP there.

My sense was that Krugman advocated a specific method for increasing the money supply. Since the central bank couldn't get commercial banks to lend even with interest rates at 0%, Krugman advocated that they expand the money supply by buying up forex with yen. This would increase the supply of yen in circulation, expand MS, and potentially generate some inflation. Asacarny 19:51, 18 April 2006 (UTC)

[edit] Why does "zero inflation" redirect here?

Wonderstruck 17:39, 26 March 2007 (UTC)