This extraordinary monetary policy tool was used in Europe and Japan after the 2008 financial crisis. The central bank can begin injecting money into the economy to stimulate spending and artificially lower interest rates below zero by buying longer-dated government bonds as well as other securities such as mortgage bonds. Government projects can fuel job growth and spending when companies hold back. The lure of lower prices becomes too attractive, and the savings are used to take advantage of those low prices. When there are real bargains out there, people just can't help themselves from spending. The Federal Reserve can raise interest rates, which may lead people to invest more of their money, rather than hoard it. During a recession and low inflation, however, this is a highly risky move.
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