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.”
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.
Explore alternative tools beyond rate cuts.
Themes
Mood
Type
When to use this quote
- central banking
- financial planning
- government policy
Key Concepts
Questions to Reflect On
- What alternatives exist?
- How do expectations affect policy?
Policy may be limited by political factors.