Comment on ‘Using a Long-Term Interest Rate as the Monetary Policy Instrument’∗
نویسنده
چکیده
The use of a long-term interest rate as the instrument of monetary policy would not have the advantage, sometimes claimed for it, of relaxing the constraint on what can be achieved by monetary policy when the zero lower bound on short-term interest rates is reached. The proposal would also seem an impractical one to implement. ∗I would like to thank Gauti Eggertsson, Eduardo Loyo and Paul Tucker for helpful discussions of the issues raised in this paper.
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