Several aspects of the difficulties of policy at the zero lower bound are discussed: The difficulty of credible commitment to higher future inflation, as most New Keynesian models imply is necessary; the need for fiscal and monetary policy coordination; and the pitfalls in the taking of quasi-fiscal actions by the central bank.
|Original language||English (US)|
|Number of pages||9|
|Journal||International Journal of Central Banking|
|State||Published - Mar 1 2010|
All Science Journal Classification (ASJC) codes
- Economics and Econometrics