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The risky steady state and the interest rate lower bound

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Listed:
  • Schmidt, Sebastian
  • Nakata, Taisuke
  • Hills, Timothy

Abstract

Even when the policy rate is not at the effective lower bound (ELB), the possibility that the policy rate will become constrained by the ELB in the future lowers today JEL Classification: E32, E52

Suggested Citation

  • Schmidt, Sebastian & Nakata, Taisuke & Hills, Timothy, 2016. "The risky steady state and the interest rate lower bound," Working Paper Series 1913, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:20161913
    Note: 2179645
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    File URL: https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp1913.en.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    liquidity trap; zero lower bound;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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