Skip to main content
Business LibreTexts

13.15: Discussion- Impact of Low Interest Rates on Monetary Policy

  • Page ID
  • Respond to the following prompts in a post with a minimum of 200 words, then comment on at least TWO other posts.

    • Since the end of the Great Recession, interest rates have been at historic lows—in some cases, close to zero. How is expansionary monetary policy, or more specifically a open market purchase, supposed to work? How do near-zero interest rates limit the ability of expansionary monetary policy to work?
    • How has the Fed responded to this quandary? That is, what policies has the Fed conducted?
    • In your opinion, how effective has the Fed’s policy been as a response to the Great Recession? What evidence can you suggest to support your position?
    CC licensed content, Original
    • Discussion: Impact of Low Interest Rates on Monetary Policy. Authored by: Steve Greenlaw and Lumen Learning. License: CC BY: Attribution
    • Was this article helpful?