Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/25438 
Erscheinungsjahr: 
2004
Schriftenreihe/Nr.: 
CFS Working Paper No. 2004/14
Verlag: 
Goethe University Frankfurt, Center for Financial Studies (CFS), Frankfurt a. M.
Zusammenfassung: 
In this paper, we study the effectiveness of monetary policy in a severe recession and deflation when nominal interest rates are bounded at zero. We compare two alternative proposals for ameliorating the effect of the zero bound: an exchange-rate peg and price-level targeting. We conduct this quantitative comparison in an empirical macroeconometric model of Japan, the United States and the euro area. Furthermore, we use a stylized micro-founded two-country model to check our qualitative findings. We find that both proposals succeed in generating inflationary expectations and work almost equally well under full credibility of monetary policy. However, price-level targeting may be less effective under imperfect credibility, because the announced price-level target path is not directly observable.
Schlagwörter: 
monetary policy rules
zero-interest-rate bound
liquidity trap
rational expectations
nominal rigidities
exchange rates
JEL: 
E31
E52
E58
E61
Persistent Identifier der Erstveröffentlichung: 
Dokumentart: 
Working Paper

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