Latest / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Zero Lower Bound Again
Episode 93 of Monetary Policy Explained with Fexingo. Lucas and Luna drill into the zero lower bound on interest rates — a concept that seemed obsolete after 2015 but is suddenly relevant again as several advanced economies flirt with near-zero policy rates in mid-2026. They use the Bank of Japan's experience as the central case, showing how Japan spent nearly a decade at the ZLB before moving to yield curve control, and why the ECB and Federal Reserve are now studying that playbook. The episode walks through the mechanics of the ZLB (why rates can't go much below zero without…
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