Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
965610 | Journal of the Japanese and International Economies | 2006 | 26 Pages |
Abstract
In this paper, we analyze the conduct of monetary policy under a zero nominal interest-rate bound (hereafter ZIB) in a model economy of the euro area, namely that of the Area Wide Model. The aggregate euro-area economy is modeled to have relatively sluggish adjustment properties and a private sector with mainly backward-looking expectations. For a given ZIB benchmark, we consider variations in the monetary-policy reaction function to minimize the macro-economic consequences of such a deflationary regime. We rank the effectiveness of these remedial policies using a number of metrics and relate our results to features and properties of the model economy. J. Japanese Int. Economies 20 (3) (2006) 338-363.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Alistair Dieppe, Peter McAdam,