To overcome the limits on traditional monetary policy imposed by the effective lower bound
on short-term interest rates, in recent years the Federal Reserve and other advanced …

I study optimal monetary policy in a simple New Keynesian model with portfolio adjustment
costs. Purchases of long-term debt by the central bank (quantitative easing;'QE') alter the …

We simulate the FRB/US model and a number of statistical models to quantify some of the
risks stemming from the effective lower bound (ELB) on the federal funds rate and to assess …

The presence of the lagged shadow policy rate in the interest rate feedback rule reduces the
government spending multiplier nontrivially when the policy rate is constrained at the zero …

Can the central bank credibly commit to keeping the nominal interest rate low for an
extended period of time in the aftermath of a deep recession? By analyzing credible plans in …

When the monetary policy rate is at the zero bound,“threshold-based forward
guidance”(TBFG) is a state-contingent promise to delay liftoff from the zero bound until …

Real-world central banks have a strong aversion to policy reversals. Nevertheless,
theoretical models of monetary policy within the dynamic general equilibrium framework …

We analyze the framework for monetary policy in view of the effective lower bound (ELB).
We find that the ELB is likely to bind in most future recessions and propose some ways that …

Abstract" Threshold-based forward guidance"(TBFG) is a state-contingent commitment to
hold the policy rate at the zero lower bound until macroeconomic variables breach …

How can the central bank credibly implement a “lower-for-longer” strategy? To answer this
question, we analyze a series of optimal sustainable policy problems—indexed by the …