zero bound
Exchange rate policy and the zero bound on nominal interest rates
... In this paper, we study the effectiveness of monetary policy in a severe recession and defla- tion when nominal interest rates are bounded at zero. We compare two alternative proposals for ameliorating the effect of ...
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Redistributive Tax Policy at the Zero Bound
... Going forward, section 2 describes a three period OLG model with credit con- straints, nominal prices and downward rigid wages, where households pay taxes on labor income, consumption and capital income 4 , and firms pay ...
26
Real rigidities and optimal stabilization at the Zero Lower Bound in New Keynesian economies
... at zero even after the natural rate has recovered to positive values, enacting an increase in government spending or, more controversially, introducing tax increases have all been discussed as viable stabilization ...
48
The Non Zero Lower Bound Lending Rate and the Liquidity Trap
... this paper labels a bank liquidity trap. In this study the non-zero lower bound lending rate was combined with the conventional zero bound rate through the liquidity preference of banks. The ...
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Qualitative Easing in Support of a Tumbling Financial System: A Recent Look at the Eurosystem´s Recent Balance Sheet Policies
... the zero-bound, as interest rate policy becomes ...the zero-bound (Bernanke, Reinhart and Sack 2004, Güraynak, Sack and Swanson 2005, and Rosa and Verga 2008), the credibility of these ...
20
Financial frictions and the zero lower bound on interest rates: a DSGE analysis
... the zero bound is not likely to bind, and if it does the consequences may not be ...binding zero bound, so that an increase in government spending should help to turn the economy around when ...
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Fiscal Policy Interventions at the Zero Lower Bound
... the zero lower bound and does not respond to government spending shocks and to an increase in inflation, the government spending multiplier becomes almost twice as large, since it is estimated to be higher ...
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Zero lower bound, unconventional monetary policy and indicator properties of interest rate spreads
... the zero level for a sufficiently long period, the ZLB constraint on short-term rates should also affect the behavior of the long-term ...the zero bound throughout ...
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Real Rigidities and Optimal Stabilization at the Zero Lower Bound in New Keynesian Economies
... at zero for some time after the zero bound ceases to ...at zero as well as the implied in‡ation rates vary considerably depending on the assumed degree of strategic complementarity in price ...
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Estimating the Effective Lower Bound for the Czech National Bank's Policy Rate
... In the years after the outbreak of the global financial crisis, central banks have cut their policy rates, which are now at their historical minimum, on average every three days. Since 2012, several central banks in ...
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Prediction of Term Structure with Potentially Misspecified Macro Finance Models near the Zero Lower Bound
... In this paper, we study the forecasting performances of the affine term structure model (ATSM) and the quadratic term structure model (QTSM) with macro-finance features un- der the zero interest rate policy of ...
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The interdependence of monetary and macroprudential policy under the zero lower bound National Bank of Belgium Working Paper No 310
... Melina and Villa (2017). Monetary policy is accommodating, letting inflation increase. The rise in inflation causes a fall in the shadow value of consumption, contrary to the case of CCB and active monetary policy. ...
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Vol 4, No 11 (2013)
... Proof: Let us suppose that 𝑓𝑓(𝑧𝑧) = 1. This supposition can be made without loss of generality because if 𝑓𝑓(𝑧𝑧) has a zero of order ′𝑚𝑚′ at the origin then we may consider 𝑔𝑔(𝑧𝑧) = 𝑐𝑐. 𝑓𝑓(𝑧𝑧) 𝑧𝑧 𝑚𝑚 where 𝑐𝑐 is so ...
14
Monetary policy and asset prices: When cleaning up hits the zero lower bound
... Adopting this interpretation of the recent crisis the policy strategies available to monetary policymakers are investigated in this paper. Basically, monetary policymakers have the choice between dealing with the ...
22
Government spending, GDP and exchange rate in Zero Lower Bound: measuring causality at multiple horizons
... Government spending, GDP and exchange rate in Zero Lower Bound: measuring causality at multiple horizons MAO TAKONGMO, Charles Olivier... Causality measure at horizon h.[r] ...
12
Cost Channel, Interest Rate Pass Through and Optimal Policy under Zero Lower Bound
... This paper analyzes optimal monetary policy under zero lower bound in the presence of cost channel. Cost channel introduces trade-o¤ between output and in‡ation when economy is out of ZLB. As a result, exit ...
25
Can forbidden zones for the expectation explain noise influence in behavioral economics and decision sciences?
... The plenary report [6] presented the idea of these new general bounds (restrictions) on the expectations of random variables in the presence of a non-zero minimal variance. Possible contributions to engineering ...
7
Monetary Policy, Fiscal Policy, and Secular Stagnation at the Zero Lower Bound A View on the Eurozone
... the zero lower bound – cannot be lowered further, this would prevent conventional monetary policy from adequately stimulating demand and, hence, economic ...
130
The Inflation Target at the Zero Lower Bound
... at zero for a substantial period of time could be interpreted as an increase in the in‡ation target if it were not accompanied by concerns about "exit strategies" to keep in‡ation low once the economy ...
39
Do the Bank of Japan’s Unconventional Monetary Policies Decrease Real Interest Rates under a Zero Lower Bound?
... the zero lower bound period, the sample begins in the month in which the call rate (or short-term interest rate) falls below 50 basis points, following Iwata and Wu [8] and Nakajima ...
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