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Central bank Quote by Toshihiko Fukui

“However, in spite of the general perception that monetary policy should be conducted so as to avert deflation, a central bank cannot lower interest rates below the zero lower bound.” quote by Toshihiko Fukui
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“However, in spite of the general perception that monetary policy should be conducted so as to avert deflation, a central bank cannot lower interest rates below the zero lower bound.”

Toshihiko Fukui

About This Quote

Source Academic paper: Monetary Policy Limits, 2015

Central banks cannot cut rates below zero, despite wanting to avoid deflation.

In simple terms: Zero lower bound stops rate cuts.

Key Takeaway

Explore alternative tools beyond rate cuts.

Themes

economics policy constraints

Mood

analytical neutral

Type

academic informative

When to use this quote

  • central banking
  • financial planning
  • government policy

Key Concepts

zero lower bound monetary tools inflation

Questions to Reflect On

  • What alternatives exist?
  • How do expectations affect policy?
A Different Perspective

Policy may be limited by political factors.

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