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Zero lower bound - is it a problem with the euro area? Author info | Abstract | Publisher info | Download info | Related research | Statistics Günter Coenen () (Directorate General Research, European Central Bank, Kaiserstrasse, 29, 60311, Frankfurt am Main, Germany. )
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This paper presents the results of a quantitative study of the implications of the zero lower bound on nominal interest rates which was undertaken in the context of the review of the ECB’s monetary policy strategy in Spring 2003. Focusing on the euro area, the paper provides an assessment of the likelihood that the short-term nominal interest rate may be constrained at zero and quantifies how the zero-bound constraint may affect the dynamic behaviour of key macroeconomic variables such as the short-term nominal interest rate, annual inflation and output. JEL Classification: E31; E52; E58; E61.
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Paper provided by European Central Bank in its series Working Paper Series with number
269.
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Length: 26 pages
Date of creation: Sep 2003Date of revision:
Handle: RePEc:ecb:ecbwps:20030269Contact details of provider: Postal: Postfach 16 03 19, Frankfurt am Main, Germany Phone: +49 69 1344 0 Fax: +49 69 1344 6000 Web page: http://www.ecb.europa.eu/home/html/index.en.html More information through EDIRC
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Keywords: Zero-interest-rate bound price stability nominal rigidities interest rate rules euro area. Other versions of this item:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Coenen, Gunter & Wieland, Volker, 2003.
"The zero-interest-rate bound and the role of the exchange rate for monetary policy in Japan ,"
Journal of Monetary Economics ,
Elsevier, vol. 50(5), pages 1071-1101, July.
[Downloadable!] (restricted)
Other versions:
Volker Wieland & Gunter Coenen, 2003.
"The Zero-Interest-Rate Bound and the Role of the Exchange Rate for Monetary Policy in Japan ,"
Computing in Economics and Finance 2003
138, Society for Computational Economics.
Coenen, Günter & Wieland, Volker, 2003.
"The Zero-Interest Rate Bound and the Role of the Exchange Rate for Monetary Policy in Japan ,"
CEPR Discussion Papers
3895, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Günter Coenen & Volker Wieland, 2003.
"The Zero-interest-rate bound and the role of the exchange rate for monetary policy in Japan ,"
Working Paper Series
218, European Central Bank.
[Downloadable!] David Reifschneider & John C. Williams, 1999.
"Three lessons for monetary policy in a low inflation era ,"
Finance and Economics Discussion Series
1999-44, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Other versions: Guenter Coenen & Volker Wieland, 2003.
"The Zero-Interest-Rate and the Role of the Exchange Rate for Monetary Policy in Japan ,"
CFS Working Paper Series
2003/09, Center for Financial Studies.
[Downloadable!]
Gali, Jordi & Gertler, Mark & Lopez-Salido, J. David, 2001.
"European inflation dynamics ,"
European Economic Review ,
Elsevier, vol. 45(7), pages 1237-1270.
[Downloadable!] (restricted)
Other versions:
Jordi Galí & Mark Gertler & J. David López-Salido, 2000.
"European Inflation Dynamics ,"
Banco de España Working Papers
0020, Banco de España.
Jordi Gali & Mark Gertler & J. David Lopez-Salido, 2001.
"European Inflation Dynamics ,"
NBER Working Papers
8218, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Galí, Jordi & Gertler, Mark & López-Salido, J David, 2001.
"European Inflation Dynamics ,"
CEPR Discussion Papers
2684, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Athanasios Orphanides & Volker Wieland, 1998.
"Price stability and monetary policy effectiveness when nominal interest rates are bounded at zero ,"
Finance and Economics Discussion Series
1998-35, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!]
Other versions:
Guenter Coenen & Athanasios Orphanides & Volker Wieland, 2003.
"Price Stability and Monetary Policy Effectiveness when Nominal Interest Rates are Bounded at Zero ,"
CFS Working Paper Series
2003/13, Center for Financial Studies.
[Downloadable!] Coenen, Günter & Orphanides, Athanasios & Wieland, Volker, 2003.
"Price Stability and Monetary Policy Effectiveness when Nominal Interest Rates are Bounded at Zero ,"
CEPR Discussion Papers
3892, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Günter Coenen & Athanasios Orphanides & Volker Wieland, 2003.
"Price stability and monetary policy effectiveness when nominal interest rates are bounded at zero ,"
Working Paper Series
231, European Central Bank.
[Downloadable!] Günter Coenen & Athanasios Orphanides & Volker Wieland, 2004.
"Price Stability and Monetary Policy Effectiveness when Nominal Interest Rates are Bounded at Zero ,"
Advances in Macroeconomics ,
Berkeley Electronic Press, vol. 4(1), pages 1187-1187.
[Downloadable!] (restricted) Günter Coenen, 2003.
"Inflation persistence and robust monetary policy design ,"
Working Paper Series
290, European Central Bank.
[Downloadable!]
Other versions: Lawrence J. Christiano & Martin Eichenbaum & Charles Evans, 2001.
"Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy ,"
NBER Working Papers
8403, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Lawrence J. Christiano & Martin Eichenbaum & Charles L. Evans, 2001.
"Nominal rigidities and the dynamic effects of a shock to monetary policy ,"
Working Paper Series
WP-01-08, Federal Reserve Bank of Chicago.
[Downloadable!] Lawrence J. Christiano & Martin Eichenbaum & Charles Evans, 2001.
"Nominal rigidities and the dynamic effects of a shock to monetary policy ,"
Working Paper
0107, Federal Reserve Bank of Cleveland.
[Downloadable!] Lawrence J. Christiano, Martin Eichenbaum, and Charles L. Evans, 2005.
"Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy ,"
Journal of Political Economy ,
University of Chicago Press, vol. 113(1), pages 1-45, February.
Lawrence J. Christiano & Martin Eichenbaum & Charles Evans, 2001.
"Nominal rigidities and the dynamic effects of a shock to monetary policy ,"
Proceedings ,
Federal Reserve Bank of San Francisco, issue Jun.
[Downloadable!] Frank Smets & Rafael Wouters, 2002.
"An estimated stochastic dynamic general equilibrium model of the euro area ,"
Working Paper Series
171, European Central Bank.
[Downloadable!]
Clarida, Richard & Gali, Jordi & Gertler, Mark, 1998.
"Monetary policy rules in practice Some international evidence ,"
European Economic Review ,
Elsevier, vol. 42(6), pages 1033-1067, June.
[Downloadable!] (restricted)
Other versions:
Richard Clarida & Jordi Gali & Mark Gertler, 1997.
"Monetary Policy Rules in Practice: Some International Evidence ,"
NBER Working Papers
6254, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Clarida, Richard & Gali, Jordi & Gertler, Mark, 1997.
"Monetary Policy Rules in Practice: Some International Evidence ,"
Working Papers
97-32, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!] Clarida, Richard & Galí, Jordi & Gertler, Mark, 1997.
"Monetary Policy Rules in Practice: Some International Evidence ,"
CEPR Discussion Papers
1750, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Günter Coenen & Volker Wieland, 2000.
"A small estimated Euro area model with rational expectations and nominal rigidities ,"
Working Paper Series
30, European Central Bank.
[Downloadable!]
Other versions:
Coenen, Günter & Wieland, Volker, 2002.
"A Small Estimated Euro Area Model with Rational Expectations and Nominal Rigidities ,"
CEPR Discussion Papers
3574, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Gunter Coenen & Volker Wieland, 2000.
"A Small Estimated Euro-Area Model with Rational Expectations and Nominal Rigidities ,"
Econometric Society World Congress 2000 Contributed Papers
1284, Econometric Society.
[Downloadable!] Guenter Coenen & Volker Wieland, 2003.
"A Small Estimated Euro Area Model with Rational Expectations and Nominal Rigidities ,"
CFS Working Paper Series
2003/08, Center for Financial Studies.
[Downloadable!] Coenen, Gunter & Wieland, Volker, 2005.
"A small estimated euro area model with rational expectations and nominal rigidities ,"
European Economic Review ,
Elsevier, vol. 49(5), pages 1081-1104, July.
[Downloadable!] (restricted)
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Matthieu Darracq Pariès & Stéphane Adjemian & Stéphane Moyen, 2007.
"Optimal monetary policy in an estimated DSGE for the euro area ,"
Working Paper Series
803, European Central Bank.
[Downloadable!]
Bofinger, Peter & Mayer, Eric, 2004.
"Monetary and Fiscal policy Interaction in the Euro Area with Different Assumptions on the Phillips Curve ,"
CEPR Discussion Papers
4790, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
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