***  Another reason for the discussion has recently been the low-interest rate environment which now prevails in much of the developed world. This situation has focused the attention of economists to the so-called zero lower bound of interest rate policy.
While real activity in the US did  BIS Review 113/2006  1  provide a stimulus to activity in the rest of the world, it has been accompanied by large and growing twin deficits - fiscal as well as current account deficits.