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All Macroeconomic Economists and Financial Analysts think a Zero Interest Rate Bound is a problem. What...

All Macroeconomic Economists and Financial Analysts think a Zero Interest Rate Bound is a problem. What do you think?

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It is a problem indeed, the monetary policy increase the money supply and reduce the interest rate and that lower interest rate increase the investment and economic activity in the market to take the economy out of recession. Reduction in the interest rate here act as a catalyst to improve the demand in the market.

But when the interest rate is zero bound, it cannot be lowered further to increase the demand and boost the economy, then the monetary policy fails and the economist have to depend in untried ways like using helicopter money i.e. transferring money directly to the people to increase the demand.

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