Since this situation is highly likely in practice, optimal monetary policy involves a compromise between the goals of zero nominal interest rates and other goals. The robust finding is not that nominal interest rates should be literally zero but that nominal interest rates and inflation rates should be low.
ABOUT THE AUTHOR Amita Seth
Mrs. Amita Seth holds her Ph.D. degree in sociology from Chhatrapati Sahuji Maharaj University of Kanpur. She has taught sociology to graduate and post-graduate classes for many years and retired as head of the department of sociology. She has been member of the group of welfare Associations working for women and disabled. A number awards she had received from the government for her work in this field presently she is chairman of this association.
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