Low rates, zero lower bound and monetary policy black hole

Lei Lv; Zhi Xin Liu

doi:10.1080/13504851.2020.1803475

Low rates, zero lower bound and monetary policy black hole

Lei Lv^*
, Zhi Xin Liu

^*Corresponding author for this work

School of Economics and Management

Beihang University

Research output: Contribution to journal › Article › peer-review

2 Scopus citations

Abstract

This article provides an analytical characterization of the effects of supply shocks and demand shocks on the economy of long-term zero lower bound. We consider a tractable New Keynesian model with price stickiness and show that supply shocks will make the economy more tightening while demand shocks will make the economy more expansionary.

Original language	English
Pages (from-to)	1114-1120
Number of pages	7
Journal	Applied Economics Letters
Volume	28
Issue number	13
DOIs	https://doi.org/10.1080/13504851.2020.1803475
State	Published - 2021

Keywords

Low interest rates
fiscal policy
monetary policy black hole
zero lower bound

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10.1080/13504851.2020.1803475

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title = "Low rates, zero lower bound and monetary policy black hole",

abstract = "This article provides an analytical characterization of the effects of supply shocks and demand shocks on the economy of long-term zero lower bound. We consider a tractable New Keynesian model with price stickiness and show that supply shocks will make the economy more tightening while demand shocks will make the economy more expansionary.",

keywords = "Low interest rates, fiscal policy, monetary policy black hole, zero lower bound",

author = "Lei Lv and Liu, \{Zhi Xin\}",

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year = "2021",

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AB - This article provides an analytical characterization of the effects of supply shocks and demand shocks on the economy of long-term zero lower bound. We consider a tractable New Keynesian model with price stickiness and show that supply shocks will make the economy more tightening while demand shocks will make the economy more expansionary.

KW - Low interest rates

KW - fiscal policy

KW - monetary policy black hole

KW - zero lower bound

UR - https://www.scopus.com/pages/publications/85089192730

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DO - 10.1080/13504851.2020.1803475

M3 - 文章

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VL - 28

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JO - Applied Economics Letters

JF - Applied Economics Letters

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ER -

Low rates, zero lower bound and monetary policy black hole

Abstract

Keywords

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