Global liquidity trap

Ippei Fujiwara, Tomoyuki Nakajima, Nao Sudo, Yuki Teranishi

研究成果: Article

10 引用 (Scopus)

抜粋

How should monetary policy respond to a "global liquidity trap," where the two countries may fall into a liquidity trap simultaneously? Using a two-country New Open Economy Macroeconomics model, we first characterize optimal monetary policy, and show that the optimal rate of inflation in one country is affected by whether or not the other country is in a liquidity trap. We next examine how well the optimal monetary policy is approximated by relatively simple monetary policy rules. The interest-rate rule targeting the producer price index performs well in this respect.

元の言語English
ページ(範囲)936-949
ページ数14
ジャーナルJournal of Monetary Economics
60
発行部数8
DOI
出版物ステータスPublished - 2013 11 1

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

フィンガープリント Global liquidity trap' の研究トピックを掘り下げます。これらはともに一意のフィンガープリントを構成します。

  • これを引用