In Japan in the 1990s interest rates were near zero on government bonds. Some economists said that

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In Japan in the 1990s interest rates were near zero on government bonds. Some economists said that it was still possible to stimulate investment by creating negative real interest rates. If nominal rates could not fall below zero, explain how real interest rates could be made negative.
Nominal Rates
"Nominal interest rate refers to the interest rate before taking inflation into account. Nominal can also refer to the advertised or stated interest rate on a loan, without taking into account any fees or compounding of interest. The nominal...
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Macroeconomics Principles Applications and Tools

ISBN: 978-0134420684

9th edition

Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez

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