Trump is Pushing for Interest Rates of 'Zero or Less' — But do They Work?

Faculty Fellow Jeffrey Bergstrand was mentioned in a NBC News article: "Trump is Pushing for Interest Rates of 'Zero or Less' — But do They Work?". The article discusses how this could have a negative effect as it would erase any gains in savings, but would not change their revolving debt such as credit cards or loans. 

"Lack of demand drove lower prices, causing people in turn to put off purchases as they waited for even lower prices. Companies lost business and laid off workers. Such a deflationary spiral ultimately "leads to [a] depression," said Jeffrey Bergstrand, a finance professor at the University of Notre Dame and former Federal Reserve economist."