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zero bound
’Money for nothing
Dire Straits wisely observed back in 1985 that it’s nice — but possibly derisible — to have people give you money for nothing.
Nevertheless, it happens to be the way to do it if you’re the US Treasury (H/T Clusterstock).
Examining the US liquidity trap
The Fed has published an interesting working paper on the subject of foreign shocks to a country bound by zero rates. Authored by Martin Bodenstein, Christopher Erceg and Luca Guerrieri, it seems roughly to conclude that a zero-rate liquidity trap has the effect of amplifying the effects of a foreign shock on GDP.