Expansionary monetary policy has been less effective in the eurozone during the period of persistently low interest rates, a working paper published by the Netherlands Bank finds.

In Macroeconomic reversal rate: evidence from a nonlinear IS curve, Jan Willem van den End et al look at how the investment-saving (IS) curve is affected by low interest rates.

The authors look at data on the eurozone from 1999 to 2019, describing it as having “two distinct regimes” in this period – ‘normal’ and ‘low

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