when a central bank lowers interest rates saving money becomes less attractive people are more likely to increase their spending or invest in new businesses 
stagnation vs stagflation vs recessionas an economy cycles from growth to decline or decline to growth it may have periods of stagnation stagflation or recession real world example of stagnationthe great recession which began in 2008 kicked off a long period of economic stagnation followed by a slow expansion from 2009 until the covid 19 pandemic in 2020 gdp growth averaged 2 3 during this time 1 during the aftermath and recovery of the great recession the federal reserve s monetary policy included quantitative easing to help the united states spur the stalled economy 