In the past decade, central banks worldwide started to face new challenges: Rather than preventing too high inflation rates, monetary policy makers started to worry about too low inflation. Very low and even negative policy rates and large balance sheet expansion together with unconventional...

This volume was prepared by Susanne Link during her stay at the Ludwig-Maximilians-University of Munich and the Department of Human Capital and Innovation of the Ifo Institute of Economic Research. It was accepted as a doctoral thesis by the Economics Departure of the University of Munich in...