The article discusses the limitations of conventional monetary policy, particularly in the context of a liquidity trap. It references Paul Krugman's work on Japan's economic slump and explores the role of central banks in influencing expectations and reducing bond yields through quantitative easing. The effectiveness of these measures is debated, with a focus on the potential impact on inflation expectations, interest rates, and investment.
doj/DataSet10/EFTA01388570.pdf
{"title":"The limits of monetary policy","key_people":["Paul Krugman"],"document_date":"March 2018","document_type":"other","key_locations":["Japan"],"document_subtype":"article","key_organizations":["Brookings Papers on Economic Activity"]}