Shocks at the Zero Lower Bound
Adventures at the Zero Lower Bound: A Bayesian Time-Varying Parameter Vector Autoregressive Analysis of Monetary Policy Uncertainty Shocks
... or shocks to interest rate expectations (forward guidance) have a significantly smaller effect on ...the zero-lower bound, monetary policy uncertainty is at its’ highest levels since ...
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Export shocks and the zero bound trap
... There exist several related studies. Among them, the studies closest to ours is Bodenstein, Erceg, and Guerrieri (2009). They …nd that the e¤ect of foreign demand shock is signi…cantly ampli…ed when the domestic economy ...
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Why Is the Government Spending Multiplier Larger at the Zero Lower Bound? Not (Only) Because of the Zero Lower Bound
... I assume that the shock is big enough for the economy to stay one period at the Zero Lower Bound. I also assume that the government spending shock is small enough so that it does not influence the ...
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The Inflation Target at the Zero Lower Bound
... the zero lower bound, discre- tionary policy immediately sets in‡ation and the output gap at their optimal values of zero, while both our policy and commitment retain non-zero values of ...
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Banks, Money and the Zero Lower Bound
... the zero lower bound (ZLB) on deposit interest rates, in an economy where lending interest rates move towards zero with the policy rate and therefore compress lending ...disinflationary ...
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The Inflation Target at the Zero Lower Bound
... the zero lower bound, discre- tionary policy immediately sets in‡ation and the output gap at their optimal values of zero, while both our policy and commitment retain non-zero values of ...
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The Neo Fisherianism to Escape Zero Lower Bound
... for a long period of time. This policy keeps the nominal interest rate at its long-run equilibrium value of r n . However, this is not a …xed interest rate policy. The nominal interest rate is allowed to respond to ...
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Uncertainty and the Zero Lower Bound: A Theoretical Analysis
... Abstract This paper demonstrates how to analytically characterize the set of ra- tional expectations equilibria in a simple stochastic New Keynesian model with the zero lower bound. In this ...
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Inflation During and After the Zero Lower. Bound
... of zero or negative inflation have been associated with low output and high ...adverse shocks to productivity, aggregate demand, or financial ...factor shocks, e.g., the δ t in (2), which increase ...
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Fiscal Policy Interventions at the Zero Lower Bound
... a zero lower bound policy is effective in stimulating growth in the big four eurozone economies as well in counteracting a recession and deflation- ary ...the zero lower ...spending ...
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Changing macroeconomic dynamics at the zero lower bound
... Finally, the persistence of stock price growth has changed throughout the four regimes, reaching its highest value during the crisis period. However, the statistical uncertainty surrounding these estimates is high across ...
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Heeding Daedalus: Optimal Inflation and the Zero Lower Bound
... use shocks from the period 1968–83 and assume an equilibrium real rate of only 1 ...what lower equilibrium real rate of return over the past decade, such as the remarkable accumulation of dollar assets by ...
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Taylor-Rule Exit Policies for the Zero Lower Bound
... of shocks which min- imize 1;T ; minimizing the e¤ects of the integer ...initial shocks sending the natural rate of interest to values between ...is lower, for example ...
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Monetary policy feedback rules at the zero lower bound
... This sounds like an element of the Great Panic of 2008. Monetary policy follows a quantitative rule ... “... whatever rule the monetary authority follows, it corresponds to a particular reduced-form feedback function ...
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Taylor Rule Exit Policies for the Zero Lower Bound
... postponed exit date provides stimulus since the interest rate will be kept at zero even after the natural rate becomes positive. The optimal in‡ation target is negative, allowing the monetary authority to smooth ...
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Taylor Rule Exit Policies for the Zero Lower Bound
... of shocks which min- imize 1;T ; minimizing the e¤ects of the integer ...initial shocks sending the natural rate of interest to values between ...is lower, for example ...
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Heeding Daedalus: Optimal inflation and the zero lower bound
... The upper panel of Table 2 reports the simulated outcomes under the classic Taylor rule assuming the shocks are drawn using a normal distribution from the covariance matrix computed from the full sample of ...
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The importance of timevaryingparametersin new Keynesian modelswith zero lower bound
... The estimated value of the discount factor is relatively high in the three cases and the steady state inflation and output growth point toward a mild 1.5-2 percent value at annual rate. In the three models, the ...
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The Non Zero Lower Bound Lending Rate and the Liquidity Trap
... near zero: injecting monetary base into the economy has no effect, because base and bonds are viewed by the private sector as perfect ...negatively shocks banks’ liquidity preference ; (iii) central bank ...
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A Time-Invariant Duration Policy under the Zero Lower Bound
... the zero lower bound entails a high degree of complexity and time-inconsistency in a stochastic ...adverse shocks disappear, but unlike the optimal commitment policy, the duration is ...
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