Monetary policy at the zero interest bound

A model comparison exercise

Ippei Fujiwara, Peter McAdam, John M. Roberts

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

In this paper, we summarize the findings from zero-interest-bound simulation exercises conducted on the policy/forecasting models of the three major central banks. After imposing a fixed-period zero-interest-bound episode on each model, we consider common variations in the monetary-policy reaction function to minimize the macro-economic consequences of such a deflationary regime. Although there is some heterogeneity in the ranking of these remedial policies, reflecting the different properties of the models, we find that more aggressive policy rules and price-targeting rules are potentially candidates for robust monetary strategies. J. Japanese Int. Economies 20 (3) (2006) 305-313.

Original languageEnglish
Pages (from-to)305-313
Number of pages9
JournalJournal of the Japanese and International Economies
Volume20
Issue number3
DOIs
Publication statusPublished - 2006 Sep
Externally publishedYes

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central bank
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Model comparison
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Monetary policy
Policy rules
Monetary policy reaction function
Ranking
Simulation
Japanese economy
Central bank
Targeting rules
Macroeconomics

Keywords

  • Model comparison
  • Taylor rule
  • Zero interest bound

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

Monetary policy at the zero interest bound : A model comparison exercise. / Fujiwara, Ippei; McAdam, Peter; Roberts, John M.

In: Journal of the Japanese and International Economies, Vol. 20, No. 3, 09.2006, p. 305-313.

Research output: Contribution to journalArticle

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