It is thought that it doesn't help much to cut official interest rates toward or beyond zero, and maybe it doesn't, but new research suggests the answer has a lot to do with the housing market.
Persistently low inflation puts the Reserve Bank in a difficult position where the right thing to do might be doing nothing at all, writes Richard Holden.
Data from Australia and overseas, inlcuding the fluctuations in the US stock market, point to a tricky balancing act for policy makers, writes Richard Holden.
