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dc.contributor.authorPalacio-Vera, Alfonsoen_US
dc.date.accessioned2010-05-14T11:08:36Z-
dc.date.available2010-05-14T11:08:36Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/31535-
dc.description.abstractWe present a simple theoretical framework that integrates the notion of the natural or neutral interest rate, liquidity preference theory, and the monetary policy practice by modern central banks. We claim that this theory explains the conditions under which an economy will experience an aggregate demand deficiency problem within a modern institutional setting. Contrary to the predictions of the New Consensus View in macroeconomics, the model suggests that structural” factors such as a high saving rate and, especially, a low natural” rate of growth increase the chances that an economy experiences an aggregate demand deficiency. Contrary to conventional wisdom, the model predicts that a fall in the NAIRU may lead to a rise in the natural interest rate, and vice versa.en_US
dc.language.isoengen_US
dc.publisherThe Levy Economics Inst. of Bard College Annandale-on-Hudson, NYen_US
dc.relation.ispartofseriesWorking papers // The Levy Economics Institute 478en_US
dc.subject.jelB50en_US
dc.subject.jelE12en_US
dc.subject.jelE24en_US
dc.subject.jelE50en_US
dc.subject.ddc330en_US
dc.subject.keywordNeutral interest rateen_US
dc.subject.keywordlower-bound trapen_US
dc.subject.keywordaggregate demand deficiencyen_US
dc.subject.keywordnatural rate of growthen_US
dc.titleOn lower-bound traps: a framework for the analysis of monetary policy in the age of central banksen_US
dc.typeWorking Paperen_US
dc.identifier.ppn570220483en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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