ZIRP, or zero interest rate policy, is a method used by central banks to stimulate growth by keeping interest rates close to zero. It has been employed by countries like Japan, the United States, and the United Kingdom to combat economic challenges, such as deflation and slow growth, following a financial crisis. However, ZIRP has been criticized for its potential negative effects, such as the development of liquidity traps and adverse impacts on long-term investments and financial stability. Despite these criticisms, ZIRP is still used as a post-recession remedy due to its ability to stimulate economic activity.

What is Zirp?

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