Robust Monetary Policy Under Uncertainty About the Lower Bound-Reference-Cited by-同舟云学术

Robust Monetary Policy Under Uncertainty About the Lower Bound

Published:2020-07-29 Issue:1 Volume:21 Page:309-321
ISSN:1935-1690
Container-title:The B.E. Journal of Macroeconomics
language:en
Short-container-title:

Author:

Tillmann Peter¹

Affiliation:

1. Department of Economics , Justus-Liebig-University Gießen, University of Giessen , Gießen , Germany

Abstract

Abstract Central banks face uncertainty about the true location of the effective lower bound (ELB) on nominal interest rates. We model optimal discretionary monetary policy during a liquidity trap when the central bank designs policy that is robust with respect to the location of the ELB. If the central bank fears the worst-case location of the ELB, monetary conditions will be more expansionary in the period before the liquidity trap.

Funder

DAAD PPP "Uncertainty and Monetary Policy"

Publisher

Walter de Gruyter GmbH

Subject

Economics and Econometrics

Link

https://www.degruyter.com/document/doi/10.1515/bejm-2019-0077/pdf

Reference25 articles.

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