Risk Premium Shocks and the Zero Bound on Nominal Interest Rates

Material TypeArticleLanguageEnglish
TitleRisk Premium Shocks and the Zero Bound on Nominal Interest Rates Author(S)ROBERT AMANO (Author)
Abstract  Quantitative dynamic stochastic general equilibrium (DSGE) models often admit that the zero bound on nominal interest rates does not constrain (optimal) monetary policy. Recent economic events, however, have reinforced the relevance of the zero bound. This paper sheds some light on this disconnect by studying a broad range of shocks within a standard DSGE model ...Paginationp1475–1505
SubjectEconomicsDescriptorsEconomics
Journal TitleJournal of Money, Credit, and Banking  
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