"For a long time, the macro-economy was managed by changing interest rates. So it is quite a shock for policy makers to experience a situation where their main policy tool was no longer sufficient."
I would argue that their main policy tool never worked in the first place!
4 comments:
"For a long time, the macro-economy was managed by changing interest rates. So it is quite a shock for policy makers to experience a situation where their main policy tool was no longer sufficient."
I would argue that their main policy tool never worked in the first place!
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It's very helpful now it's clear to me 😊😊😊
It's very helpful but I hv confusion about the explanation of relationship between rate of interest and liquidity trap
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