This is of special interest to me because I am giving to the European Central Bank on July 7 to explain how to eliminate the zero lower bound. If the ECB has decided to go to negative interest rates, it has already crossed the political rubicon. I will argue that eliminating the ZLB is therefore politically manageable.

Note: I have organized what I have written about facilitating negative interest rates in “How and Why to Eliminate the Zero Lower Bound: A Reader’s Guide” and wrote about it recently in “Ken Rogoff: Paper Money is Unfit for a World of High Crime and Low Inflation.”