Optimal Monetary Policy Rule under the Non-Negativity Constraint on Nominal Interest Rates

We identify a monetary policy rule that remains optimal even in the presence of the non-negativity constraint on nominal interest rates. This rule also compensates for any past shortfalls in monetary easing during the zero interest rate period.

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Year of publication:	2004-06
Authors:	Sugo, Tomohiro ; Teranishi, Yuki
Institutions:	Bank of Japan
Subject:	optimal monetary policy rule \| non-negativity constraint on nominal interest rates

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Extent:	application/pdf
Series:	Bank of Japan Working Paper Series.
Type of publication:	Book / Working Paper
Notes:	Number 04-E-10
Source:	RePEc - Research Papers in Economics

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