Governor of the Bank of Israel Speaks about lessons from the Global Crisis

Exert from a speech by Stanly Fischer: During and after the great depression, many central bankers and economists concluded that monetary policy could not be used to stimulate economic activity in a situation in which the interest rate was essentially zero, as it was in the USA during the 1930’s – a situation that later became known as the liquidity trap.

To read the whole speak, please click here.