A new policy tool for central banks

When short term interest rates are close to zero and economy is facing recession or even depression, expansionary monetary policy is not fully effective. Here is proposed the creation of a new monetary policy tool to avoid this problem and improve the fine tuning ability of Central Banks. The proposed instrument is a fund held by central bank, it is financed by mandatory contributions of employed peopled and it grants subsidies to those who have recently lost their job. In some exceptional situations newly created money can be used to integrate the fund. The Size of both contributions and subsidies set as percentage of individual income is decided by central bank within ranges established by law.