Zero Interest Rate Policy | Vibepedia

The zero interest rate policy (ZIRP) is a macroeconomic concept where a central bank sets nominal interest rates at or near zero, typically in response to deflation, low inflation, or economic stagnation. This unconventional monetary policy instrument has been employed by various countries to stimulate economic growth and mitigate the effects of economic downturns. As noted by some economists, ZIRP is a subclass of monetary policy and has been a topic of discussion among economists. With a focus on stimulating economic growth, ZIRP has been implemented by central banks to mitigate the effects of economic downturns.