
THE PHENOMENON OF LOW INTEREST RATES IN THE CONTEXT OF MONETARY AND FISCAL INTERACTION (POLICY MIX)
(STEF92 Technology, 2017, J. Stawska)
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In considering the issue of coordination between monetary policy and fiscal policy, or a lack of it, one has to take account of the so-called zero lower bound on nominal interest rates, also known as a zero-bound (ZLB) problem. The problem basically is that nominal interest rates cannot drop below zero. Many economists argue that a near-zero interest rate encourages fiscal stimulation that certainly has influence on the type of decisions made by the central bank. Some studies point to higher effectiveness of fisca...













