Monetary Policy Expectations at the Zero Lower Bound
نویسندگان
چکیده
منابع مشابه
Optimal Monetary Policy at the Zero Lower Bound
We study optimal monetary policy at the zero lower bound. The macroeconomy we study has considerable income inequality which gives rise to a large private sector credit market. Households participating in this market use non-state contingent nominal contracts (NSCNC). A second, small group of households only uses cash and cannot participate in the credit market. The monetary authority supplies ...
متن کاملWhat does Monetary Policy do at the Zero Lower Bound?
The federal funds rate has been stuck at the zero bound for over two years, and the Fed has instead resorted to unconventional monetary policies, such as large scale asset purchases to provide stimulus to the economy. This paper uses a structural VAR to identify the e¤ects of monetary policy shocks on the con guration of interest rates during this period. The VAR is identi ed using the assumpti...
متن کاملOptimal Monetary and Fiscal Policy at the Zero Lower Bound in a Small Open Economy∗
We study optimal monetary and fiscal policy at the zero lower bound in a small open economy model with sticky prices and a flexible exchange rate. In such a liquidity trap situation, the economy suffers from a negative output gap, producer price deflation, and an appreciated real exchange rate (compared to its efficient level). The extent of these adverse effects and the duration of the liquidi...
متن کاملWhat does Monetary Policy do to Long-Term Interest Rates at the Zero Lower Bound?
The federal funds rate has been stuck at the zero bound for over two years and the Fed has turned to unconventional monetary policies, such as large scale asset purchases to provide stimulus to the economy. This paper uses a structural VAR with daily data to identify the e¤ects of monetary policy shocks on various longer-term interest rates during this period. The VAR is identi ed using the ass...
متن کاملPolicy at the Zero Bound
When nominal interest rates are at the zero bound, so that monetary policy cannot be used to provide appropriate stymulus, tax policy can accomplish that at zero cost. There is no need to use ine¢ cient policies, such as wasteful public spending. This means that the zero bound on nominal interest rates is not a relevant constraint on both scal and monetary policy. Key words : Zero Bound; Fisca...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2013
ISSN: 1556-5068
DOI: 10.2139/ssrn.2334540