Results 11 to 20 of about 22,401 (285)
SSRN Electronic Journal, 2010 In this paper we consider a two-country New Open Economy Macroeconomics model, and analyze the optimal monetary policy when countries cooperate in the face of a "global liquidity trap" -- i.e., a situation where the two countries are simultaneously ...
Ippei Fujiwara +3 more
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Policy interaction, expectations and the liquidity trap [PDF]
SSRN Electronic Journal, 2003 In this paper we consider inflation and government debt dynamics when monetary policy employs a global interest rate rule and private agents’ forecasts using adaptive learning. Because of the zero lower bound on interest rates, active interest rate rules
Evans, George W., Honkapohja , Seppo
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International economic spillovers and the liquidity trap [PDF]
SSRN Electronic Journal, 2005 We study the effect of the zero bound constraint of interest rates on international transmission of eco-nomic policy and supply shocks. After some preliminary analysis with a simple theoretical model, we ap-ply a rich two-country simulation model to the ...
Kortelainen , Mika, Tarkka , Juha
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Avoiding Liquidity Traps [PDF]
SSRN Electronic Journal, 2000 Once the zero bound on nominal interest rates is taken into account, Taylor-type interest-rate feedback rules give rise to unintended self-fulfilling decelerating inflation paths and aggregate fluctuations driven by arbitrary revisions in expectations ...
Benhabib, J. +2 more
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Conservatism and Liquidity Traps [PDF]
SSRN Electronic Journal, 2014 Appointing Rogoff's (1985) conservative central banker improves welfare if the economy is subject to large contractionary shocks and the policy rate occasionally falls to the zero lower bound (ZLB). In an economy with occasionally binding ZLB constraints, the anticipation of future ZLB episodes creates a trade-off between inflation
Nakata, Taisuke, Schmidt, Sebastian
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Gradualism and Liquidity Traps [PDF]
SSRN Electronic Journal, 2016 Modifying the objective function of a discretionary central bank to include an interest-rate smoothing objective increases the welfare of an economy in which large contractionary shocks occasionally force the central bank to lower the policy rate to its effective lower bound. The central bank with an interest-rate smoothing objective credibly keeps the
Nakata, Taisuke, Schmidt, Sebastian
openaire +3 more sources
Liquidity traps, learning and stagnation [PDF]
European Economic Review, 2008 We examine global economic dynamics under learning in a New Keynesian model in which the interest-rate rule is subject to the zero lower bound. Under normal monetary and fiscal policy, the intended steady state is locally but not globally stable. Large pessimistic shocks to expectations can lead to deflationary spirals with falling prices and falling ...
Evans, George W., 1949- +2 more
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Liquidity traps in a world economy [PDF]
Journal of Economic Dynamics and Control, 2021 zbMATH Open Web Interface contents unavailable due to conflicting licenses.
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Reputation and liquidity traps [PDF]
Review of Economic Dynamics, 2014 Can the central bank credibly commit to keeping the nominal interest rate low for an extended period of time in the aftermath of a deep recession? By analyzing credible plans in a sticky-price economy with occasionally binding zero lower bound constraints, I find that the answer is yes if contractionary shocks hit the economy with sufficient frequency.
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Liquidity Traps in a Monetary Union [PDF]
SSRN Electronic Journal, 2020 Abstract The closed economy macro literature has shown that a liquidity trap can result from the self-fulfilling expectation that future inflation and output will be low. This paper investigates expectations-driven liquidity traps in a two-country New Keynesian model of a monetary union.
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