scholarly journals Identifying the Stance of Monetary Policy at the Zero Lower Bound: A Markov-Switching Estimation Exploiting Monetary-Fiscal Policy Interdependence

2018 ◽  
Vol 50 (1) ◽  
pp. 115-154 ◽  
Author(s):  
MANUEL GONZALEZ-ASTUDILLO
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Lower Bound ◽  
Markov Switching ◽  
Zero Lower Bound

scholarly journals Measuring the Effect of the Zero Lower Bound on Medium- and Longer-Term Interest Rates

2014 ◽  
Vol 104 (10) ◽  
pp. 3154-3185 ◽  
Author(s):  
Eric T. Swanson ◽  
John C. Williams
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Lower Bound ◽  
Private Sector ◽  
Interest Rates ◽  
Zero Lower Bound ◽  
Short Term ◽  
Macroeconomic Models ◽  
Monetary And Fiscal Policy ◽  
Effectiveness Of Monetary Policy

According to standard macroeconomic models, the zero lower bound greatly reduces the effectiveness of monetary policy and increases the efficacy of fiscal policy. However, private-sector decisions depend on the entire path of expected future short-term interest rates, not just the current short-term rate. Put differently, longer-term yields matter. We show how to measure the zero bound's effects on yields of any maturity. Indeed, 1- and 2-year Treasury yields were surprisingly unconstrained throughout 2008 to 2010, suggesting that monetary and fiscal policy were about as effective as usual during this period. Only beginning in late 2011 did these yields become more constrained. (JEL E43, E52, E62)

Optimal Monetary Policy at the Zero Lower Bound

2015 ◽  
Author(s):  
Costas Azariadis ◽  
James Bullard ◽  
Aarti Singh ◽  
Jacek Suda
Keyword(s):  
Monetary Policy ◽  
Lower Bound ◽  
Zero Lower Bound ◽  
Optimal Monetary Policy

The Case for Imposing Cashlessness: A Review Article

2018 ◽  
Vol 56 (4) ◽  
pp. 1587-1591
Author(s):  
Neil Wallace
Keyword(s):  
Fiscal Policy ◽  
Interest Rate ◽  
Lower Bound ◽  
Central Bank ◽  
Review Article ◽  
Zero Lower Bound ◽  
Illegal Activity ◽  
The Interest Rate

In The Curse of Cash, Rogoff (2016) makes two arguments. (i) Large denominations of currency are primarily used for illegal activity. Therefore, eliminating them would have benefits that far outweigh the costs in terms of lost seigniorage. (ii) The zero lower bound (ZLB) on the interest rate implied by the possibility of holding large amounts of currency is a costly constraint on central-bank policy. The best way to eliminate the ZLB is to eliminate all but small denominations of currency, ten dollars and lower, and to have those be in the form of coins. The style of the book, no models and no symbols, works fairly well for (i), but not so well for (ii). For (ii), the author is unclear about a crucial matter: what fiscal policy accompanies alternative interest-rate settings chosen by the central bank? ( JEL E26, E42, E43, E52, E58, E62)

scholarly journals Monetary policy and asset prices: When cleaning up hits the zero lower bound

2013 ◽  
Vol 149 (3) ◽  
pp. 291-312
Author(s):  
Wolfram Berger ◽  
Friedrich Kissmer
Keyword(s):  
Monetary Policy ◽  
Lower Bound ◽  
Asset Prices ◽  
Zero Lower Bound

scholarly journals Fiscal Policy at the Zero Lower Bound without Rational Expectations

2021 ◽  
Author(s):  
Riccardo Bianchi Vimercati ◽  
Martin Eichenbaum ◽  
Joao Guerreiro
Keyword(s):  
Fiscal Policy ◽  
Lower Bound ◽  
Rational Expectations ◽  
Zero Lower Bound

scholarly journals Monetary Policy Expectations and Economic Fluctuations at the Zero Lower Bound

2015 ◽  
Author(s):  
Rachel Doehr ◽  
Enrique Martinez-Garcia
Keyword(s):  
Monetary Policy ◽  
Lower Bound ◽  
Economic Fluctuations ◽  
Zero Lower Bound
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