--- title: "Meaning & Key Takeaway of: However, in spite of the general…" description: "\"However, in spite of the general perception that monetary policy should be conducted so as to avert deflation, a central bank cannot lower interest rat..." image: "https://sms4smile.com/quotes/i/5db/toshihiko-fukui-31799_central-bank_however-in-spite-of-the-general-percepti_1533449.jpg" --- # However, in spite of the general perception that monetary… ![“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](https://sms4smile.com/quotes/i/5db/toshihiko-fukui-31799_central-bank_however-in-spite-of-the-general-percepti_1533449.jpg) [Download](https://sms4smile.com/quotes/i/5db/toshihiko-fukui-31799_central-bank_however-in-spite-of-the-general-percepti_1533449.jpg) [Open image](https://sms4smile.com/quotes/i/5db/toshihiko-fukui-31799_central-bank_however-in-spite-of-the-general-percepti_1533449.jpg) > “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](https://sms4smile.com/quotes/author/toshihiko-fukui/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. 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. ★ ★ ★ ★ ★ No ratings yet [Central bank](https://sms4smile.com/quotes/about/central-bank/) [Customer](https://sms4smile.com/quotes/about/customer/) [Deflation](https://sms4smile.com/quotes/about/deflation/) [Interest](https://sms4smile.com/quotes/about/interest/) [Monetary policy](https://sms4smile.com/quotes/about/monetary-policy/) [Perception](https://sms4smile.com/quotes/about/perception/) [Spite](https://sms4smile.com/quotes/about/spite/) ## Related quotes > [We had 90 percent rates, but nobody paid them. And so you had all these exemptions, exclusions, shelters, all this kind of stuff. And…](https://sms4smile.com/quotes/rick-santorum/we-had-90-percent-rates-but-nobody-paid-them-and-so-you-had-all-these/) [Rick Santorum](https://sms4smile.com/quotes/author/rick-santorum/) > [Getting rid of the deductibility of state and local taxes will force the highest corporate tax states to lower their rates, or fewer corporations…](https://sms4smile.com/quotes/stephen-moore/getting-rid-of-the-deductibility-of-state-and-local-taxes-will-force/) [Stephen Moore](https://sms4smile.com/quotes/author/stephen-moore/) > [There's a tradeoff. Yeah, I lose the deduction that I really like, but my tax rate is going to go down, and I don't…](https://sms4smile.com/quotes/t-r-reid/there-s-a-tradeoff-yeah-i-lose-the-deduction-that-i-really-like-but/) [T.R. Reid](https://sms4smile.com/quotes/author/t-r-reid/) > [There are all these studies out there. But let's get at the bottom line. That is, I want to bring down rates. I want…](https://sms4smile.com/quotes/mitt-romney/there-are-all-these-studies-out-there-but-let-s-get-at-the-bottom/) [Mitt Romney](https://sms4smile.com/quotes/author/mitt-romney/) > [There have been times when the Federal Reserve has restricted the money supply and raised interest rates to gain an end, which had much…](https://sms4smile.com/quotes/wright-patman/there-have-been-times-when-the-federal-reserve-has-restricted-the/) [Wright Patman](https://sms4smile.com/quotes/author/wright-patman/) > [It would be helpful if someone would lay out exactly the economic mechanism that gets us from yet lower interest rates to actual economic…](https://sms4smile.com/quotes/jerry-a-webman/it-would-be-helpful-if-someone-would-lay-out-exactly-the-economic/) [Jerry A. Webman](https://sms4smile.com/quotes/author/jerry-a-webman/) > [It's time to level the playing field for small business owners and give them the same health care choices that large corporations have. Because…](https://sms4smile.com/quotes/jeff-merkley/it-s-time-to-level-the-playing-field-for-small-business-owners-and/) [Jeff Merkley](https://sms4smile.com/quotes/author/jeff-merkley/) > [Everybody will have lower rates, better quality, and better access.](https://sms4smile.com/quotes/nancy-pelosi/everybody-will-have-lower-rates-better-quality-and-better-access/) [Nancy Pelosi](https://sms4smile.com/quotes/author/nancy-pelosi/) > [I think the millions of people who had been able to renegotiate their mortgages so they are paying lower interest rates are better off.](https://sms4smile.com/quotes/david-axelrod/i-think-the-millions-of-people-who-had-been-able-to-renegotiate-their/) [David Axelrod](https://sms4smile.com/quotes/author/david-axelrod/) > [Multimillionaires cannot pay lower rates than their secretaries and other people working for them.](https://sms4smile.com/quotes/hillary-clinton/multimillionaires-cannot-pay-lower-rates-than-their-secretaries-and/) [Hillary Clinton](https://sms4smile.com/quotes/author/hillary-clinton/) > [Businesses and households react to lower rates by investing and spending more. Lower rates also support the prices of housing and financial assets such…](https://sms4smile.com/quotes/jerome-powell/businesses-and-households-react-to-lower-rates-by-investing-and/) [Jerome Powell](https://sms4smile.com/quotes/author/jerome-powell/) > [Starting in the '80s or so, after the United States sharply cut its rates, other countries decided they better do it too, and here's…](https://sms4smile.com/quotes/t-r-reid/starting-in-the-80s-or-so-after-the-united-states-sharply-cut-its/) [T.R. Reid](https://sms4smile.com/quotes/author/t-r-reid/) > [If you get rid of all these giveaways and loopholes and deductions and credits, then you can sharply lower the rates.](https://sms4smile.com/quotes/t-r-reid/if-you-get-rid-of-all-these-giveaways-and-loopholes-and-deductions/) [T.R. Reid](https://sms4smile.com/quotes/author/t-r-reid/) > [Close loopholes, close the special interest Washington carve outs and that means more incomes subject to taxation so we're going to lower the rates…](https://sms4smile.com/quotes/paul-ryan/close-loopholes-close-the-special-interest-washington-carve-outs-and/) [Paul Ryan](https://sms4smile.com/quotes/author/paul-ryan/) > [Lower interest rates are usually considered good for stocks because they lower the cost of borrowing and make bonds a less attractive alternative investment.](https://sms4smile.com/quotes/alex-berenson/lower-interest-rates-are-usually-considered-good-for-stocks-because/) [Alex Berenson](https://sms4smile.com/quotes/author/alex-berenson/) ## More by Toshihiko Fukui > [The standard growth theory tells us that economic growth in per capita basis comes from mainly two sources: capital deepening and total factor productivity…](https://sms4smile.com/quotes/toshihiko-fukui/the-standard-growth-theory-tells-us-that-economic-growth-in-per/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) > [They emphasize the viewpoint that the protracted economic stagnation in Japan derives from incomplete economic adjustments to significant changes in relative prices.](https://sms4smile.com/quotes/toshihiko-fukui/they-emphasize-the-viewpoint-that-the-protracted-economic-stagnation/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) > [In this context, the current recovery in the Japanese economy is taking place in tandem with the growing interdependence with the rest of the…](https://sms4smile.com/quotes/toshihiko-fukui/in-this-context-the-current-recovery-in-the-japanese-economy-is/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) > [Well-functioning financial systems are important in achieving sustained economic growth. They play a crucial role in channeling household savings into the corporate sector and…](https://sms4smile.com/quotes/toshihiko-fukui/well-functioning-financial-systems-are-important-in-achieving/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) > [Thus, the questions we should ask here are what makes the current economic upswing different from the past two recoveries, and whether such differences…](https://sms4smile.com/quotes/toshihiko-fukui/thus-the-questions-we-should-ask-here-are-what-makes-the-current/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) > [The aging and decreasing population is a serious problem in many developed countries today. In Japan's case, these demographic changes are taking place at…](https://sms4smile.com/quotes/toshihiko-fukui/the-aging-and-decreasing-population-is-a-serious-problem-in-many/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) > [Japan's experience suggests the importance of assessing the sustainability of price stability over a fairly long period, which many central banks have emphasized in…](https://sms4smile.com/quotes/toshihiko-fukui/japan-s-experience-suggests-the-importance-of-assessing-the/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) > [The direct investment of Japanese businesses to East Asian economies accelerates the reallocation of their production bases. Consequently, between Japan and the other East…](https://sms4smile.com/quotes/toshihiko-fukui/the-direct-investment-of-japanese-businesses-to-east-asian-economies/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) > [The staff at the Institute will present an analysis on how asset price fluctuations and subsequent structural adjustments influence sustained economic growth, based on…](https://sms4smile.com/quotes/toshihiko-fukui/the-staff-at-the-institute-will-present-an-analysis-on-how-asset/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) > [As the new endogenous growth theory suggests, TFP growth is closely related to accumulation of the intangible capitals, such as human capital and research…](https://sms4smile.com/quotes/toshihiko-fukui/as-the-new-endogenous-growth-theory-suggests-tfp-growth-is-closely/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) > [During the past two decades, inflation has fallen to a low level in major industrial countries.](https://sms4smile.com/quotes/toshihiko-fukui/during-the-past-two-decades-inflation-has-fallen-to-a-low-level-in/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) > [With weak balance sheets, banks tend to continue lending unprofitable businesses and leave them existing.](https://sms4smile.com/quotes/toshihiko-fukui/with-weak-balance-sheets-banks-tend-to-continue-lending-unprofitable/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) > [In fact, the recent increase in intra-firm trading enables businesses to shift their activities across borders smoothly, thereby strengthening the response of economic activity…](https://sms4smile.com/quotes/toshihiko-fukui/in-fact-the-recent-increase-in-intra-firm-trading-enables-businesses/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) > [The increased global linkages promote economic growth in the world through two key mechanisms: the division of labor and the international spillovers of knowledge.](https://sms4smile.com/quotes/toshihiko-fukui/the-increased-global-linkages-promote-economic-growth-in-the-world/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) > [The aging and declining population will have far-reaching impacts. Declining fertility rates will possibly increase immigration. The structure of family and society will inevitably…](https://sms4smile.com/quotes/toshihiko-fukui/the-aging-and-declining-population-will-have-far-reaching-impacts/) [Toshihiko Fukui](https://sms4smile.com/quotes/author/toshihiko-fukui/) [Explore all 16 Toshihiko Fukui quotes ](https://sms4smile.com/quotes/author/toshihiko-fukui/) ## More Central bank quotes > ['Inequality' has become the political theme/slogan of our time in both Europe and the U.S., yet political leaders do not even bother to consider…](https://sms4smile.com/quotes/paul-singer/inequality-has-become-the-political-theme-slogan-of-our-time-in-both/) [Paul Singer](https://sms4smile.com/quotes/author/paul-singer/) > [There could be some compromise, but I think we have to stick to the provisions of the treaty, and the provisions of the treaty…](https://sms4smile.com/quotes/jacques-santer/there-could-be-some-compromise-but-i-think-we-have-to-stick-to-the/) [Jacques Santer](https://sms4smile.com/quotes/author/jacques-santer/) > [There is no doubt in my mind that as central banks begin to abandon the dollar, there will be an enormous amount of monetary…](https://sms4smile.com/quotes/porter-stansberry/there-is-no-doubt-in-my-mind-that-as-central-banks-begin-to-abandon/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [Monetary policy transmission encompasses the whole continuum of interest rates; of course, the central bank only determines the overnight policy rate.](https://sms4smile.com/quotes/urjit-patel/monetary-policy-transmission-encompasses-the-whole-continuum-of/) [Urjit Patel](https://sms4smile.com/quotes/author/urjit-patel/) > [The fear is that if the dollar falls below 50% of the currency basket held by commercial and central banks and insurance companies, there…](https://sms4smile.com/quotes/porter-stansberry/the-fear-is-that-if-the-dollar-falls-below-50-of-the-currency-basket/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [Repeal the entire Banking Act of 1933, and Austrian School economists will cheer, especially if the current system were replaced by a 100%-reserve competitive…](https://sms4smile.com/quotes/llewellyn-rockwell/repeal-the-entire-banking-act-of-1933-and-austrian-school-economists/) [Llewellyn Rockwell](https://sms4smile.com/quotes/author/llewellyn-rockwell/) > [In the old days we were the challenger brand competing against the big banks, but today I go round the world and I sit…](https://sms4smile.com/quotes/lloyd-dorfman/in-the-old-days-we-were-the-challenger-brand-competing-against-the/) [Lloyd Dorfman](https://sms4smile.com/quotes/author/lloyd-dorfman/) > [“The Fed is still on the same track.” Whatever you call it, the benign economic environment has supported a bull market since 2009, and…](https://sms4smile.com/quotes/anonymous/the-fed-is-still-on-the-same-track-whatever-you-call-it-the-benign/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [We've delegated politics to bankers. The European Central Bank is inside Deutsche Bank, and Deutsche Bank is inside the Bundesbank.](https://sms4smile.com/quotes/beppe-grillo/we-ve-delegated-politics-to-bankers-the-european-central-bank-is/) [Beppe Grillo](https://sms4smile.com/quotes/author/beppe-grillo/) > [Believe me. When you're talking about trust in government, you're preaching to the choir, whether it's on the financial side, the central banking side:…](https://sms4smile.com/quotes/rick-santelli/believe-me-when-you-re-talking-about-trust-in-government-you-re/) [Rick Santelli](https://sms4smile.com/quotes/author/rick-santelli/) > [Welcome to the age of paper money, where governments and central banks can manufacture as much money as they want without limit. Gold was…](https://sms4smile.com/quotes/llewellyn-rockwell/welcome-to-the-age-of-paper-money-where-governments-and-central-banks/) [Llewellyn Rockwell](https://sms4smile.com/quotes/author/llewellyn-rockwell/) > [By creating the European Central Bank, the member states exposed their own government bonds to the risk of default. Developed countries that issue bonds…](https://sms4smile.com/quotes/george-soros/by-creating-the-european-central-bank-the-member-states-exposed-their/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [We are privileged that the dollar is the "currency of last resort" and the most important currency in the world. Global commodities are priced…](https://sms4smile.com/quotes/kabir-sehgal/we-are-privileged-that-the-dollar-is-the-currency-of-last-resort-and/) [Kabir Sehgal](https://sms4smile.com/quotes/author/kabir-sehgal/) > [Debt, we've learned, is the match that lights the fire of every crisis. Every crisis has its own set of villains - pick your…](https://sms4smile.com/quotes/andrew-ross-sorkin/debt-we-ve-learned-is-the-match-that-lights-the-fire-of-every-crisis/) [Andrew Ross Sorkin](https://sms4smile.com/quotes/author/andrew-ross-sorkin/) > [It is clear to me that the financial sector, including CNBC, loves central banks](https://sms4smile.com/quotes/marc-faber/it-is-clear-to-me-that-the-financial-sector-including-cnbc-loves/) [Marc Faber](https://sms4smile.com/quotes/author/marc-faber/) [Browse all 254 Central bank quotes ](https://sms4smile.com/quotes/about/central-bank/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "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.", "creator": { "@type": "Person", "name": "Toshihiko Fukui" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/toshihiko-fukui/however-in-spite-of-the-general-perception-that-monetary-policy/", "about": { "@type": "Thing", "name": "Central bank" }, "@id": "https://sms4smile.com/quotes/toshihiko-fukui/however-in-spite-of-the-general-perception-that-monetary-policy/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/5db/toshihiko-fukui-31799_central-bank_however-in-spite-of-the-general-percepti_1533449.jpg", "contentUrl": "https://sms4smile.com/quotes/i/5db/toshihiko-fukui-31799_central-bank_however-in-spite-of-the-general-percepti_1533449.jpg", "url": "https://sms4smile.com/quotes/i/5db/toshihiko-fukui-31799_central-bank_however-in-spite-of-the-general-percepti_1533449.jpg", "width": 1080, "height": 1080, "caption": "“However, in spite of the general perception that monetary policy should be conducted so as to avert…” — Toshihiko Fukui", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Toshihiko Fukui", "item": "https://sms4smile.com/quotes/author/toshihiko-fukui/" }, { "@type": "ListItem", "position": 4, "name": "However, in spite of the general...", "item": "https://sms4smile.com/quotes/toshihiko-fukui/however-in-spite-of-the-general-perception-that-monetary-policy/" } ], "@id": "https://sms4smile.com/quotes/toshihiko-fukui/however-in-spite-of-the-general-perception-that-monetary-policy/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```