Supply-Side Policies and the Zero Lower Bound
نویسندگان
چکیده
منابع مشابه
Supply-side Policies, Low Aggregate Demand, and the Zero Lower Bound
s of research papers produced by the economists at the Philadelphia Fed Research Rap You can find more Research Rap abstracts on our website at: www.philadelphiafed.org/research-and-data/ publications/research-rap/. Or view our working papers at: www.philadelphiafed.org/research-and-data/ publications/. SUPPLY-SIDE POLICIES, LOW AGGREGATE DEMAND, AND THE ZERO LOWER BOUND This paper examines how...
متن کاملAU TH OR C OP Y Supply - Side Policies and the Zero Lower Bound
Supply-side policies can play a role in fighting a low aggregate demand that traps an economy at the zero lower bound (ZLB) of nominal interest rates. Reductions in mark-ups or future increases in productivity triggered by supply-side policies generate a wealth effect that pulls current consumption and output up. Since the economy is at the ZLB, increases in interest rates do not undo this weal...
متن کاملThe 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...
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...
متن کاملThe Routes into and out of the Zero Lower Bound
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...
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ژورنال
عنوان ژورنال: IMF Economic Review
سال: 2014
ISSN: 2041-4161,2041-417X
DOI: 10.1057/imfer.2014.10