Overlooked at Jackson Hole – Kansas City Federal Reserve paper: “With these advantages in mind, the paper describes three methods by which the zero bound on interest rate policy can be unencumbered completely. The three methods in turn would: i) abolish paper currency; ii) introduce a market determined flexible deposit price of paper currency; and iii) provide electronic currency (to pay or charge interest) at par with deposits, with or without the provision of paper currency as in (ii) above. Each method is assessed for its effectiveness, technological requirements, institutional modifications, potential for expedited implementation, and acceptability with the public at large.”
LINK HERE to the paper

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