摘要：The main goal of the Fed's unconventional monetary policy is to decrease the spread between the interest rate on government secu- rities and the rms'borrowing cost to maintain these rms. As a result, zero lower bound interest rate is adopted. Thus, this paper seeks to introduce an analysis to the Feds' reactions and proce- dures to counter the great recession of 2007-2008 in an economic model which contains the mechanism of zero lower bound. The paper utilizes a backward-looking model to achieve its goal. The paper shows that within the context of zero lower bound mech- anism the relationship between the in
ation rate and real GDP is unstable. At the same time, when the level of macroeconomic indictors' are set-up at zero level, the main engine to push the economy forward is the monetary policy shocks As a result, the paper concludes that in such circumstances aggressive measures and reactions are a necessary procedure to prevent the economy from falling into a de
ationary trap. Moreover, the paper intro- duces a scenario of how the economy can get out of the great
