Buiter, Willem H.; Panigirtzoglou, Nikolaos - In: Economic Journal 113 (2003) 490, pp. 723-746
The paper considers two small analytical models, one Old-Keynesian, the other New-Keynesian, possessing equilibria where nominal interest rates at all maturities can be stuck at their zero lower bound. When the authorities remove the zero nominal interest rate floor by adopting an augmented...