Skip to main content

Blog

The missing monetary-policy tool


Central banks should prepare - both legally and operationally - to carry out direct transfers to households when conventional monetary policy fails. Recent research shows that stimulus payments would increase consumption even when interest rates are close to zero.


Johannes Boehm and Xavier Jaravel

16 December 2024


Project Syndicate


https://www.project-syndicate.org/commentary/central-banks-must-make-stimulus-payments-when-conventional-policy-fails-by-johannes-boehm-1-and-xavier-jaravel-2024-12

This work is published under POID and the CEP's Growth programme.