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Monthly Archives: December 2008

11.103 – THE ZIRP SPREAD

13-Dec-08

The zero interest rate policy (ZIRP) is a Keynesian macroeconomics scheme for economies exhibiting slow growth with a very low interest rate, such as contemporary Japan and since December 16, 2008 the United States.
Under ZIRP, the central bank maintains a 0% nominal interest rate. The intended effect of a ZIRP is to encourage investment throughout [...]