Accommodating monetary policy definition
This has caused undue financial hardship for the Plaintiff.
The Third Case An Ikon emplyee filed a disability lawsuit under the Employment Retirement Income and Security Act (ERISA) to recover long-term disability benefits that were wrongfully withheld by Aetna.
In his paper on this topic, Michael Woodford finds that, in a ZIRP situation, the optimal policy for government is to spend enough in stimulus to cover the entire output gap.
Chris Modica and Warren Sulmasy find that the ZIRP policy follows from the need to refinance a high level of US public debt and from the need to recapitalize the world's banking system in the wake of the Financial crisis of 2007–2008.
This problem returned to prominence with the Japan's experience during the 90's, and more recently with the subprime crisis.
According to Friedman, a central bank can increase the monetary base even if the interest rate vanishes; it only needs to continue buying bonds.
(Note: The quote from footnote #3 may be misleading.
However, some economists—such as market monetarists—believe that unconventional monetary policy such as quantitative easing can be effective at the zero lower bound.
Others argue that when monetary policy is already used to maximum effect, to create further jobs, governments must use fiscal policy.