Darracq Pariès, Matthieu; Kok Sørensen, Christoffer; … - 2021
Could a monetary policy loosening in a low interest rate environment have unintended recessionary effects? Using a non …-linear macroeconomic model fitted to the euro area economy, we show that the effectiveness of monetary policy can decline in negative … territory until it reaches a turning point, where monetary policy becomes contractionary. The framework demonstrates that the …