Nonetheless, the lack of regional economic opportunities may not only have contributed to the UK’s Brexit-vote, but Brexit itself will also impact regional economic prospects. Not just in the UK, but also within the Netherlands and other EU countries.
Although empirical analysis suggests that unconventional tools affect the economy through the same channels as the federal funds rate, even so, there are greater costs and uncertainties associated with unconventional policies relative to changes in the federal funds rate. 16As a result, policy is likely to remain more constrained at the zero lower bound than above it.