Skip to main content
  • Subscribe
  • Register
  • Sign in
  • Membership
  • Events
  • Knowledge Center
  • About
  • Subscribe
  • Register
  • Sign in
Premium
The zero interest rate policy trap (Magazine Version)
Sovereign defaults tend to follow banking crises by a few short years.
March 2, 2011
75unhedged.jpg

By Kyle Bass  As interest rates in developed Western economies bounce along the zero lower bound, few participants realize or acknowledge that a zero interest rate policy is an inescapable trap. The problem of overindebtedness that is ameliorated by zero interest rate

To continue reading, subscribe now to Premium Journalism. Already a subscriber? login.


Contact Info

New York
1270 Avenue of the Americas, Suite 1100
New York, NY 10020
P: +1 212 224 3300

London
4 Bouverie Street
London EC4Y 8AX
P: +44 207 779 8888

Hong Kong
Unit 2488, 24/F
Lee Garden One,
33 Hysan Avenue
Causeway Bay, Hong Kong
P: +852 2912 8001

Corporate

About Us

Leadership Team

Careers

II Press Room

Digital

Masthead

Thought Leadership

Display Advertising

Reprints

FAQs

Events

Events Calendar

Memberships

Subscription

Subscribe to Premium

Register

Register for Free Account

Newsletters

Sign up for II newsletters

© 2025 Institutional Investor LLC. All material subject to strictly enforced copyright laws. Please read our Terms & Conditions, Modern Slavery Act Transparency Statement, Accessibility Statement and Privacy Policy before using the site.

LinkedIn
X
Bluesky

4.12.04 build:2025-12-18   Login