Dong, Feng; Wen, Yi - 2017 - This version: May 16, 2017
been considering or have already implemented negative nominal interest rate policy. This situation raises two important … questions for monetary theories: (i) Given the widely held doctrine of the zero lower bound on nominal interest rate, how is a … negative interest rate (NIR) policy possible? (ii) Will NIR be effective in stimulating aggregate demand? (iii) Are there any …