Scientific Research at the University of Basrah Analyzes the Effectiveness of Zero Interest Rate Policy on the U.S. Economy
Dr. Zahed Qasim Badhan, Assistant Professor at the College of Administration and Economics – Qurna, University of Basrah, in collaboration with researchers from the University of Wasit, has published a scientific study titled “Analyzing the Effectiveness of the Zero Interest Rate Policy on the U.S. Macroeconomy During the Period (2000–2020)” in the World Economics & Finance Bulletin, in its July 2024 issue.
The study aims to analyze the impact of the U.S. Federal Reserve's adoption of the zero interest rate policy on key macroeconomic variables such as investment, unemployment, inflation, and GDP during the period from 2000 to 2020. The researchers employed a cointegration model to examine the relationship between these variables, particularly in the context of major economic and financial crises, such as the global financial crisis and the COVID-19 pandemic.
The study’s results revealed a cointegrated relationship between the zero interest rate policy and the mentioned economic variables, suggesting that such a policy can be an effective tool in addressing economic crises and stimulating economic growth by encouraging investment and activating various economic sectors.
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