Showing 1 - 10 of 64
Persistent link: https://www.econbiz.de/10010424574
Persistent link: https://www.econbiz.de/10010431740
Persistent link: https://www.econbiz.de/10010514770
Persistent link: https://www.econbiz.de/10011408755
Persistent link: https://www.econbiz.de/10011745657
Persistent link: https://www.econbiz.de/10011709103
How can the central bank credibly implement a ``lower-for-longer'' strategy? To answer this question, we analyze a series of optimal sustainable policy problems---indexed by the duration of reputational loss---in a sticky-price model with an effective lower bound (ELB) constraint on nominal...
Persistent link: https://www.econbiz.de/10014082145
Macroeconomists are increasingly using nonlinear models to account for the effects of risk in the analysis of business cycles. In the monetary business cycle models widely used at central banks, an explicit recognition of risk generates a wedge between the inflation-target parameter in the...
Persistent link: https://www.econbiz.de/10012963934
Modifying the objective function of a discretionary central bank to include an interest-rate smoothing objective increases the welfare of an economy where large contractionary shocks occasionally force the central bank to lower the policy rate to its effective lower bound. The central bank with...
Persistent link: https://www.econbiz.de/10012963935
This paper analyzes the implications of distortionary taxation and debt financing for optimal government spending policy in a sticky-price economy where the nominal interest rate is subject to the zero lower bound constraint. Regardless of the type of tax available and the initial debt level,...
Persistent link: https://www.econbiz.de/10013020784