scholarly journals Tying Down the Anchor: Monetary Policy Rules and the Lower Bound on Interest Rates

2019 ◽  
pp. 01-41 ◽  
Author(s):  
Thomas M. Mertens ◽  
◽  
John C. Williams ◽  
Keyword(s):  
Monetary Policy ◽  
Lower Bound ◽  
Interest Rates ◽  
Policy Rules ◽  
Monetary Policy Rules

Monetary policy rules and the information content of the term structure of interest rates

2005 ◽  
Vol 12 (15) ◽  
pp. 933-936 ◽  
Author(s):  
Ralf Fendel ◽  
Michael Frenkel
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Information Content ◽  
Term Structure ◽  
Policy Rules ◽  
Monetary Policy Rules

scholarly journals Monetary policy special features in the context of low interest rates

2020 ◽  
Vol 2 ◽  
pp. 50-64
Author(s):  
Kristina Nesterova ◽  
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Interest Rates ◽  
Price Level ◽  
Nominal Interest Rate ◽  
Inflation Target ◽  
Policy Rules ◽  
Monetary Policy Rules ◽  
Monetary Rules

Introduction. The paper considers a wide range of monetary policy rules: integral stabilization, NGDP targeting, price level targeting, raising the inflation target, introducing negative nominal interest rates etc. The author also considers discretionary policy used by central banks when the nominal rate is close to zero, such as dramatic preventive cut of the key interest rate and interventions in the open markets with the aim of cutting long-term interest rates. The relevance of this problem is supported by global long-term macroeconomic and demographic factors, such as the dynamics of oil prices and the aging of the population. The aim of the paper is to identify the most effective monetary policy rules in order to reduce the risk of a nominal interest rate falling to zero. Methods. Analysis of the background and the results of general equilibrium models modeling monetary policy is carried out. Analysis of the role of current global trends (based on statistics) in aggravating the problem of declining interest rates. Scientific novelty of the research. The author systematizes the conclusions of modern macroeconomic theory, which offers a number of monetary rules making it possible to reduce the likelihood of falling into the zero bound of interest rate. Results. The effectiveness of monetary rules such as targeting nominal GDP and price levels in preventing the nominal interest rate from falling to zero is shown, primarily due to more efficient public expectations management which is a weak point of discretionary intervention. Conclusions. Under the current global factors for many developed countries and some oil-exporters, the downward trend in nominal rates persists. Combined with slowdown in economic growth, such threat may have negative consequences for the Russian economy. In this case, it seems reasonable to stick to the inflation target above 2% per year and in the future to consider switching to targeting the price level or nominal GDP.

scholarly journals Circumventing the Zero Lower Bound with Monetary Policy Rules Based on Money

2017 ◽  
Author(s):  
Michael Belongia ◽  
Peter Ireland
Keyword(s):  
Monetary Policy ◽  
Lower Bound ◽  
Zero Lower Bound ◽  
Policy Rules ◽  
Monetary Policy Rules

scholarly journals Circumventing the zero lower bound with monetary policy rules based on money

2017 ◽  
Vol 54 ◽  
pp. 42-58 ◽  
Author(s):  
Michael T. Belongia ◽  
Peter N. Ireland
Keyword(s):  
Monetary Policy ◽  
Lower Bound ◽  
Zero Lower Bound ◽  
Policy Rules ◽  
Monetary Policy Rules

scholarly journals Estimating Monetary Policy Rules When Nominal Interest Rates Are Stuck at Zero

2017 ◽  
Vol 49 (4) ◽  
pp. 585-602 ◽  
Author(s):  
JINILL KIM ◽  
SETH PRUITT
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Policy Rules ◽  
Monetary Policy Rules ◽  
Nominal Interest Rates
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