What Are the Unconventional Policy Options That Central Bankers Can

question 59

Essay

What are the unconventional policy options that central bankers can use if the traditional target interest rate hits the lower bound?

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Definitions:

Earnings Ability

A company's potential to generate profits from its operations over time, indicating its long-term financial viability and success.

Functional Currency

The primary currency used by a business or entity in its financial statements, reflecting the principal economic environment in which it operates.

Competitive Forces

The external factors that influence the competitive environment of a business, including competitors, buyers, suppliers, potential entrants, and substitute products.

Temporal Method

A method of foreign currency translation that uses exchange rates based on the timing of the original transactions.