The optimal monetary policy rule under the non-negativity constraint on nominal interest rates

Tomohiro Sugo, Yuuki Teranishi

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

We identify a monetary policy rule that remains optimal even in the presence of the non-negativity constraint on nominal interest rates. This rule also compensates for any past shortfalls in monetary easing during the zero interest rate period.

Original languageEnglish
Pages (from-to)95-100
Number of pages6
JournalEconomics Letters
Volume89
Issue number1
DOIs
Publication statusPublished - 2005 Oct
Externally publishedYes

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Monetary policy rules
Interest rates
Optimal monetary policy rules
Nominal interest rate

Keywords

  • Non-negativity constraint on nominal interest rates
  • Optimal monetary policy rule

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

The optimal monetary policy rule under the non-negativity constraint on nominal interest rates. / Sugo, Tomohiro; Teranishi, Yuuki.

In: Economics Letters, Vol. 89, No. 1, 10.2005, p. 95-100.

Research output: Contribution to journalArticle

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