ZIRP
Business & Finance abbreviation · Economics
| Stands for | Zero interest-rate policy |
|---|---|
| Categories | Business & Finance |
ZIRP stands for Zero interest-rate policy, an economics abbreviation.
Monetary policy of holding the central bank's short-term policy rate at or near zero to stimulate borrowing, spending and investment, typically during a severe downturn. ZIRP periods have often been combined with quantitative easing.
Example: Startups raised cheap money easily during the ZIRP era, but funding dried up once rates rose.
Usage notes
Japan adopted ZIRP in 1999, and the US Federal Reserve kept rates near zero from December 2008 to December 2015 and again from March 2020 to March 2022. "ZIRP era" is now used loosely for the decade of cheap money after the 2008 crisis.
Related abbreviations
More economics abbreviations
- AD – Aggregate demand
- AS – Aggregate supply
- ATC – Average total cost
- AVC – Average variable cost
- BoC – Bank of Canada
- BoE – Bank of England
- BoJ – Bank of Japan
- BoP – Balance of payments
- BOT – Balance of trade
- BRICS – Brazil, Russia, India, China and South Africa
- CAD – Current account deficit
- CBA – Cost-benefit analysis