It is an inarguable fact that post the 2008 global crisis, there has been considerable distortion in the way markets and asset prices have been behaving. A large part of the reason has been attributed to the loose monetary policies of central banks especially in the US, Europe and Japan. These economies seem to be caught in a vicious cycle. The central banks kept the interest rates close to zero hoping that it would kick start their respective economies. That has not turned out as per plan. And yet the only solution that these banks seem to offer is low interest rates for an extended period of time. Can anything be done to revive rates? As per an article in Mint, interest rates (adjusted for inflation) have been falling for three decades now. The problem is that while a central bank may choose to cut rates during a slowdown, if it does not work, there is no further headroom to reduce rates. This is because nominal interest rate cannot fall below zero.