{"id":710,"date":"2016-03-03T07:15:18","date_gmt":"2016-03-03T14:15:18","guid":{"rendered":"http:\/\/www.thomaspalley.com\/?p=710"},"modified":"2018-12-11T20:42:40","modified_gmt":"2018-12-12T03:42:40","slug":"zero-lower-bound-zlb-economics-the-fallacy-of-new-keynesian-explanations-of-stagnation","status":"publish","type":"post","link":"https:\/\/thomaspalley.com\/?p=710","title":{"rendered":"Zero Lower Bound (ZLB) Economics: The Fallacy of New Keynesian Explanations of Stagnation"},"content":{"rendered":"<p>This paper explores zero lower bound (ZLB) economics. The ZLB is widely invoked to explain stagnation and it fits with the long tradition that argues Keynesian economics is a special case based on nominal rigidities. The ZLB represents the newest rigidity. Contrary to ZLB economics, not only does a <em>laissez-faire<\/em> monetary economy lack a mechanism for delivering the natural rate of interest, it may also lack such an interest rate. Moreover, the ZLB can be a stabilizing rigidity that prevents negative nominal interest rates exacerbating excess supply conditions. <a href=\"http:\/\/www.boeckler.de\/pdf\/p_imk_wp_164_2016.pdf\" rel=\"nofollow\">[READ MORE]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This paper explores zero lower bound (ZLB) economics. The ZLB is widely invoked to explain stagnation and it fits with the long tradition that argues Keynesian economics is a special case based on nominal rigidities. The ZLB represents the newest rigidity. Contrary to ZLB economics, not only does a laissez-faire monetary economy lack a mechanism [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,7,3],"tags":[],"class_list":["post-710","post","type-post","status-publish","format-standard","hentry","category-economics","category-political-economy","category-us-policy"],"_links":{"self":[{"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/posts\/710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=710"}],"version-history":[{"count":6,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/posts\/710\/revisions"}],"predecessor-version":[{"id":1544,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/posts\/710\/revisions\/1544"}],"wp:attachment":[{"href":"https:\/\/thomaspalley.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}