ZIRPBack to Glossary
ZIRP stands for Zero Interest Rate Policy, it’s part of a number of unconventional macroeconomic policies, typically resorted to in recessionary environments. ZIRP involves central banks keeping interest rates at or around zero for prolonged periods of time. Combined with money printing (quantitative easing), ZIRP incentivizes the movement of money by making it unprofitable to save. Seeking better returns elsewhere, smart money should move around in order to capture a better return. The effect of this is to stimulate economic activity and get a staling economy moving again.
Find our Glossary interesting?
If you feel we’ve missed a term; let the Traders Expert team know and we’ll include it in our Glossary.