Robust monetary policy under uncertainty about the lower bound

Peter Tillmann

Central banks face uncertainty about the true location of the effective lower bound (ELB) on nominal interest rates. We model optimal discretionary monetary policy during a liquidity trap when the central bank designs policy that is robust with respect to the location of the ELB. If the central bank fears the worst-case location of the ELB, monetary conditions will be more expansionary before the liquidity trap occurs.

MoreLess

Year of publication:	[2019]
Authors:	Tillmann, Peter
Publisher:	Marburg : Philipps-University Marburg, School of Business and Economics
Subject:	optimal monetary policy \| discretion \| robust control \| uncertainty \| liquidity trap \| Theorie \| Theory \| Geldpolitik \| Monetary policy \| Risiko \| Risk \| Neoklassische Synthese \| Neoclassical synthesis \| Robustes Verfahren \| Robust statistics \| Liquiditätspräferenz \| Liquidity preference \| Regelbindung versus Diskretion \| Rules versus discretion

freely available

Full text |

More access options

www.uni-marburg.de

Check Google Scholar

In German libraries (KVK)

I need help

Extent:	1 Online-Ressource (circa 15 Seiten) Illustrationen
Series:	Joint discussion paper series in economics : publ. by the Universities of Aachen, Gießen, Göttingen, Kassel, Marburg, Siegen. - Marburg : Philipps University Marburg, Department of Business Administration & Economics, ISSN 1867-3678, ZDB-ID 2499212-4. - Vol. no. 2019, 14
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/204808 [Handle]
Classification:	E31 - Price Level; Inflation; Deflation ; E32 - Business Fluctuations; Cycles ; E58 - Central Banks and Their Policies
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011992357