a zero nominal rate.
Theres nothing unnatural� about it. On the contrary, the natural rate of interest�, as Wicksell defined it, is clearly negative right now. So why does Rajan feel that there must be something wrong with low rates? (hes not alone) I think his language, with its odd moral tone, is the giveaway:its the sense that economic...
Source:
http://krugman.blogs.nytimes.com/2010/06/12/strange-arguments-for-higher-rates/
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