Logo
Unionpedia
Communication
Get it on Google Play
New! Download Unionpedia on your Android™ device!
Download
Faster access than browser!
 

Zero interest-rate policy

Index Zero interest-rate policy

Zero interest-rate policy (ZIRP) is a macroeconomic concept describing conditions with a very low nominal interest rate, such as those in contemporary Japan and December 2008 through December 2015 in the United States. [1]

34 relations: Credit cycle, Discount window, Dragon King Theory, Economic history of the United States, Economic stagnation, Excess reserves, Federal funds rate, Friedman rule, Greenspan put, History of Federal Open Market Committee actions, Liquidity trap, List of acronyms: Z, Lost Decade (Japan), Natural rate of interest, Negative interest on excess reserves, Output gap, Paradox of toil, Pension fund investment in infrastructure, Pension investment in private equity, Presidency of Barack Obama, Quantitative easing, Quantitative tightening, Recession, Russian financial crisis (2014–2017), Shinkansen, Stagflation, Stephen Zarlenga, Subprime mortgage crisis, Thomas M. Hoenig, Wallace neutrality, Yield curve, Zero lower bound, 1999 in Japan, 2006 in Japan.

Credit cycle

The credit cycle is the expansion and contraction of access to credit over time.

New!!: Zero interest-rate policy and Credit cycle · See more »

Discount window

The discount window is an instrument of monetary policy (usually controlled by central banks) that allows eligible institutions to borrow money from the central bank, usually on a short-term basis, to meet temporary shortages of liquidity caused by internal or external disruptions.

New!!: Zero interest-rate policy and Discount window · See more »

Dragon King Theory

Dragon king (DK) is double metaphor for an event that is both extremely large in size or impact (a "king") and born of unique origins (a "dragon") relative to its peers (other events from the same system).

New!!: Zero interest-rate policy and Dragon King Theory · See more »

Economic history of the United States

The economic history of the United States is about characteristics of and important developments in the U.S. economy from colonial times to the present.

New!!: Zero interest-rate policy and Economic history of the United States · See more »

Economic stagnation

Economic stagnation is a prolonged period of slow economic growth (traditionally measured in terms of the GDP growth), usually accompanied by high unemployment.

New!!: Zero interest-rate policy and Economic stagnation · See more »

Excess reserves

In banking, excess reserves are bank reserves in excess of a reserve requirement set by a central bank.

New!!: Zero interest-rate policy and Excess reserves · See more »

Federal funds rate

In the United States, the federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis.

New!!: Zero interest-rate policy and Federal funds rate · See more »

Friedman rule

The Friedman rule is a monetary policy rule proposed by Milton Friedman.

New!!: Zero interest-rate policy and Friedman rule · See more »

Greenspan put

The "Greenspan put" refers to the monetary policy approach that Alan Greenspan, the former Chairman of the United States Federal Reserve Board, and other Fed members exercised from late 1987 to 2000.

New!!: Zero interest-rate policy and Greenspan put · See more »

History of Federal Open Market Committee actions

This is a list of historical rate actions by the United States Federal Open Market Committee (FOMC).

New!!: Zero interest-rate policy and History of Federal Open Market Committee actions · See more »

Liquidity trap

A liquidity trap is a situation, described in Keynesian economics, in which, "after the rate of interest has fallen to a certain level, liquidity preference may become virtually absolute in the sense that almost everyone prefers cash holding a debt which yields so low a rate of interest."Keynes, John Maynard (1936) The General Theory of Employment, Interest and Money, United Kingdom: Palgrave Macmillan, 2007 edition, A liquidity trap is caused when people hoard cash because they expect an adverse event such as deflation, insufficient aggregate demand, or war.

New!!: Zero interest-rate policy and Liquidity trap · See more »

List of acronyms: Z

(Main list of acronyms).

New!!: Zero interest-rate policy and List of acronyms: Z · See more »

Lost Decade (Japan)

The is a period of economic stagnation in Japan following the Japanese asset price bubble's collapse in late 1991 and early 1992.

New!!: Zero interest-rate policy and Lost Decade (Japan) · See more »

Natural rate of interest

The natural rate of Interest (NRI), sometimes called the neutral rate of interest, is the rate that supports the economy at full employment/maximum output while keeping inflation constant.

New!!: Zero interest-rate policy and Natural rate of interest · See more »

Negative interest on excess reserves

Negative interest on excess reserves is an instrument of unconventional monetary policy applied by central banks to encourage lending by making it costly for commercial banks to hold their excess reserves at central banks so they will lend more readily to the private sector.

New!!: Zero interest-rate policy and Negative interest on excess reserves · See more »

Output gap

The GDP gap or the output gap is the difference between actual GDP or actual output and potential GDP.

New!!: Zero interest-rate policy and Output gap · See more »

Paradox of toil

The paradox of toil is the economic hypothesis that total employment will shrink if everybody wants to work more when "the short-term nominal interest rate is zero and there are deflationary pressures and output contraction".

New!!: Zero interest-rate policy and Paradox of toil · See more »

Pension fund investment in infrastructure

Although traditionally the preserve of governments and municipal authorities, infrastructure has recently become an asset class in its own right for private sector investors- most notably pension funds Historically, pension funds have tended to invest mostly in "core-assets" such as money market instruments, government bonds, and large-cap equity, and, to a lesser extent, in "alternative assets" such as real estate, private equity and hedge funds, the average allocation to infrastructure representing only 1% of total assets under management by pensions- excluding indirect investment through ownership of stocks of listed utility and infrastructure companies.

New!!: Zero interest-rate policy and Pension fund investment in infrastructure · See more »

Pension investment in private equity

Pension investment in private equity started in the United States and Canada in the late-1970s, an era of high inflation and mediocre performance for most listed equity markets, when large institutional investors began to diversify into “non-traditional” asset classes such as private equity and real estate.

New!!: Zero interest-rate policy and Pension investment in private equity · See more »

Presidency of Barack Obama

The presidency of Barack Obama began at noon EST on January 20, 2009, when Barack Obama was inaugurated as 44th President of the United States, and ended on January 20, 2017.

New!!: Zero interest-rate policy and Presidency of Barack Obama · See more »

Quantitative easing

Quantitative easing (QE), also known as large-scale asset purchases, is an expansionary monetary policy whereby a central bank buys predetermined amounts of government bonds or other financial assets in order to stimulate the economy and increase liquidity.

New!!: Zero interest-rate policy and Quantitative easing · See more »

Quantitative tightening

Quantitative tightening (QT) is a contractionary monetary policy applied by a central bank to decrease amount of liquidity within the economy.

New!!: Zero interest-rate policy and Quantitative tightening · See more »

Recession

In economics, a recession is a business cycle contraction which results in a general slowdown in economic activity.

New!!: Zero interest-rate policy and Recession · See more »

Russian financial crisis (2014–2017)

The financial crisis in Russia in 2014–2017 was the result of the collapse of the Russian ruble beginning in the second half of 2014.

New!!: Zero interest-rate policy and Russian financial crisis (2014–2017) · See more »

Shinkansen

The, colloquially known in English as the bullet train, is a network of high-speed railway lines in Japan.

New!!: Zero interest-rate policy and Shinkansen · See more »

Stagflation

In economics, stagflation, a portmanteau of stagnation and inflation, is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high.

New!!: Zero interest-rate policy and Stagflation · See more »

Stephen Zarlenga

Stephen A. Zarlenga (1941 – 25 April 2017) was a researcher and author in the field of monetary theory, trader in stock and financial markets, and advocate of monetary reform.

New!!: Zero interest-rate policy and Stephen Zarlenga · See more »

Subprime mortgage crisis

The United States subprime mortgage crisis was a nationwide banking emergency, occurring between 2007 and 2010, that contributed to the U.S. recession of December 2007 – June 2009.

New!!: Zero interest-rate policy and Subprime mortgage crisis · See more »

Thomas M. Hoenig

Thomas Michael Hoenig (born September 6, 1946) is vice chairman of the Federal Deposit Insurance Corporation.

New!!: Zero interest-rate policy and Thomas M. Hoenig · See more »

Wallace neutrality

The Wallace neutrality (also known as Wallace Irrelevance Proposition, Modigliani–Miller theorem for government finance), is an economics proposition asserting that in certain environment, holding fiscal policy constant, alternative paths of the government financial policies have no effect on the sequences for the price level and for real allocations in the economy.

New!!: Zero interest-rate policy and Wallace neutrality · See more »

Yield curve

In finance, the yield curve is a curve showing several yields or interest rates across different contract lengths (2 month, 2 year, 20 year, etc....) for a similar debt contract.

New!!: Zero interest-rate policy and Yield curve · See more »

Zero lower bound

The Zero Lower Bound (ZLB) or Zero Nominal Lower Bound (ZNLB) is a macroeconomic problem that occurs when the short-term nominal interest rate is at or near zero, causing a liquidity trap and limiting the capacity that the central bank has to stimulate economic growth.

New!!: Zero interest-rate policy and Zero lower bound · See more »

1999 in Japan

Events in the year 1999 in Japan.

New!!: Zero interest-rate policy and 1999 in Japan · See more »

2006 in Japan

Events in the year 2006 in Japan.

New!!: Zero interest-rate policy and 2006 in Japan · See more »

Redirects here:

ZIRP, Zero interest rate policy.

References

[1] https://en.wikipedia.org/wiki/Zero_interest-rate_policy

OutgoingIncoming
Hey! We are on Facebook now! »