Coenen, Günter; Montes-Galdón, Carlos; Schmidt, Sebastian - 2021
rates are likely to be at, or near, the effective lower bound on nominal interest rates. Using the ECB's New Area-Wide Model …, we show that, if unaddressed, the effective lower bound can cause substantial costs in terms of worsened macroeconomic … undo the negative biases and heightened volatility induced by the effective lower bound. …