nonconventional Monetary Policy and the Zero Lower Bound Monetary policy entered a brave new world when policymakers had to resort to nonconventional measures when the policy interest rate—the federal funds rate in the United States—hit a floor of zero, or the so-called “zero lower bound.” Because the policy rate cannot be driven lower than zero, under this condition conventional monetary policy becomes infeasible. Nonconventional monetary policy at the zero lower bound, such as quantitative easing, has become a very controversial topic that stimulates a lot of student interest. The Eleventh Edition contains extensive discussion of this topic, including the following new material:   A new application on quantitative easing and the money supply from 2007 to 2014 (Chapter 14)   An updated section on forward guidance and the commitment to future policy actions (Chapter 15)   A new section on monetary policy at the zero lower bound that uses the aggregate demand and aggregate supply models to explain how the zero lower bound affects the conduct of monetary policy (Chapter 23)   A new application on nonconventional monetary policy and quantitative easing (Chapter 23)   A new application on Abenomics and the shift in Japanese monetary policy in 2013 (Chapter 23)