Why did monetary policy fail to work


Problem

In 1998 the Bank of Japan reduced the short-term interest rate to zero, yet the economy did not rally but remained in recession. Why did monetary policy fail to work? What else do you think the Bank of Japan could have done to stimulate real growth?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Why did monetary policy fail to work
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