ZIRP? That's not an acronym I'm familiar with.

steveklabnik 7 hours ago | parent | next [-]

https://en.wikipedia.org/wiki/Zero_interest-rate_policy

NortySpock 7 hours ago | parent | prev | next [-]

"Zero" Interest Rate Period, during the COVID pandemic, where most governments offered very cheap bonds or printed money to reduce interest rates. This caused a lot of investment as money was "cheap" for investors and needed to find a worthwhile investment in order to grow faster than inflation.

This caused a lot of money to be poured into all kinds of projects, not all of which had a positive return on investment.

	▲	dragontamer 7 hours ago \| parent \| next [-]
		ZIRP goes back to 2010 actually, when interest rates dropped so much in an attempt to stop the great recession.
	▲	tancop 6 hours ago \| parent \| prev \| next [-]
		We should do it again but the right way this time. Give literal zero interest loans from a state bank based on social value and economic priorities, just like they do in China. And set up an extreme progressive tax (90% top bracket) on returns that are paid out to owners to make sure everything gets invested back into production. More investment is the driver of economic growth. All the bad parts of ZIRP came from letting companies use the money for unproductive activity. If it's used efficiently the downward pressure from higher product supply will be stronger than inflation from more money in the system. And you get more demand in the labor market leading to higher wages.
	▲	chris_j 7 hours ago \| parent \| prev [-]
		It wasn't COVID that kicked off ZIRP, it was the global financial crisis in 2008.

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grahamedgecombe 7 hours ago | parent | prev [-]

Zero interest rate policy