Professor Miles Kimball from the University of Michigan recently spent a few weeks at The Treasury. Kimball has written a lot about the need for central banks and governments to be more active to overcoming the technological and/or legislative constraints that have allowed the near-zero lower bound to become a major constraint on monetary policy in much of the advanced world. Weak demand has been a major constraint in much of the West in recent years, and the limits on monetary policy have been a material part of that story. (Monetary policy mistakes, by central banks in places like the euro-area, Sweden and New Zealand haven’t helped.)
We had a good conversation about the ZLB issues while Kimball was here. My sense is that the ZLB issues are again becoming more pressing globally. That makes it highly regrettable that our Reserve Bank has done no pre-emptive work, and appears uninterested in…
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Utopia, you are standing in it! 
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