Journal Article
How Much Could Negative Rates Have Helped the Recovery?
Abstract: The Federal Reserve dropped the federal funds rate to near zero during the Great Recession to bolster the U.S. economy. Allowing the federal funds rate to drop below zero may have reduced the depth of the recession and enabled the economy to return more quickly to its full potential. It also may have allowed inflation to rise faster toward the Fed?s 2% target. In other words, negative interest rates may be a useful tool to promote the Fed?s dual mandate.
Access Documents
File(s):
File format is application/pdf
https://www.frbsf.org/economic-research/files/el2019-04.pdf
Description: Full text
Authors
Bibliographic Information
Provider: Federal Reserve Bank of San Francisco
Part of Series: FRBSF Economic Letter
Publication Date: 2019
Order Number: 04