Why are fiscal multipliers higher when the policy rate has hit the floor of the zero lower

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Why are fiscal multipliers higher when the policy rate has hit the floor of the zero lower bound?

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Macroeconomics Policy And Practice

ISBN: 978-0133424317

2nd Edition

Authors: Frederic Mishkin

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Question Posted: Feb 20, 2024 04:00 AM

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Why are fiscal multipliers higher when the policy rate has hit the floor of the zero lower

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Fiscal multipliers tend to be higher when the policy rate has hit the floor of the zero lower bound ZLB due to the limitations of conventional monetar...View the full answer

Macroeconomics Policy And Practice

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