See Michael Woodford (2012), “Methods of Policy Accommodation at the Interest-Rate Lower Bound,” in Proceedings – Economic Policy Symposium – Jackson Hole (Kansas City: Federal Reserve Bank of Kansas City), pp. 185-288. 15. See Gauti B. Eggertsson and Michael Woodford (2003), “The Zero Bound on Interest Rates and Optimal Monetary Policy,” Brookings Papers on Economic Activity, no. 1, pp. 139-211. 16.
That was typically shown in the current decline in lending of financial institutions in the United States and Europe. Third, it cannot be denied that somewhat slow responses by the policy and supervisory authorities in the United States and Europe to the generation of the credit bubble preceding the crisis also eventually amplified the current crisis.