This would imply more spill-over to the wider euro area economy. Some eastern European economies on the periphery could suffer, and countries outside the euro area might not be immune. Renewed fragility in funding markets could have other effects.
"The Federal Reserve’s New Framework and Outcome-Based Forward Guidance," speech delivered at “SOMC: The Federal Reserve’s New Policy Framework,” a forum sponsored by the Manhattan Institute’s Shadow Open Market Committee, New York (via webcast), April 14. Eggertsson, Gauti B. (2011). “What Fiscal Policy Is Effective at Zero Interest Rates?” in Daron Acemoglu and Michael Woodford, eds., NBER Macroeconomics Annual2010, vol.