In Search of an Appropriate Lower Bound. The Zero Lower Bound vs. the Positive Lower Bound under Discretion and Commitment
نویسندگان
چکیده
منابع مشابه
The Zero Lower Bound
In the standard New Keynesian model, monetary policy is often described by an interest rate rule (e.g. a Taylor rule) that moves the interest rate in response to deviations of inflation and some measure of economic activity from target. Nominal interest rates are bound from below by 0 – since money is storable, one would never accept a negative nominal return. How does the behavior of the NK mo...
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In this paper, we investigate the number of 1-factors of a generalized Petersen graph $P(N,k)$ and get a lower bound for the number of 1-factors of $P(N,k)$ as $k$ is odd, which shows that the number of 1-factors of $P(N,k)$ is exponential in this case and confirms a conjecture due to Lovász and Plummer (Ann. New York Acad. Sci. 576(2006), no. 1, 389-398).
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Using a rich data set on government spending forecasts, we estimate the effects of unexpected government spending both when the nominal interest rate is near zero lower bound (ZLB) and outside of ZLB period in Japan. The output multiplier is 1.5 on impact in the ZLB period while it is 0.7 outside of the ZLB period. We argue that this result is not driven by the amount of slack in the economy. W...
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The United States and most other advanced countries are closing on five years of flat-out expansionary monetary policy that has failed in all cases to restore normal conditions of employment and output. These countries have been in liquidity traps, where monetary policies that normally expand the economy by enlarging the monetary base are ineffectual. Reserves have become near-perfect substitut...
متن کاملThe Zero Lower Bound and the Dual Mandate
This article uses a DSGE framework to evaluate the role of monetary policy in determining the likelihood of encountering the zero lower bound. We find that the probability of experiencing episodes of being at zero lower bound depends almost exclusively on the monetary policy rule. A policy rule, such as the one proposed by Taylor (1993) which is based on the dual mandate is highly likely to lea...
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ژورنال
عنوان ژورنال: German Economic Review
سال: 2019
ISSN: 1468-0475,1465-6485
DOI: 10.1111/geer.12203