Monetary policy alternatives at the zero bound
Subtitle: an empirical assessment
By: Ben S. Bernanke, Vincent R. Reinhart, and Brian P. Sack.
Contributors: Reinhart, Vincent.; Sack, Brian.
Series: Finance and economics discussion series ;; 2004-48; Finance and economics discussion series (Online) ;; 2004-48.
Publisher: Federal Reserve Board
Published: 2004
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Description: "The success over the years in reducing inflation and, consequently, the average level of nominal interest rates has increased the likelihood that the nominal policy interest rate may become constrained by the zero lower bound.  When that happens, a central bank can no longer stimulate aggregate demand by further interest-rate reductions and must rely on "non-standard" policy alternatives.  To assess the potential effectiveness of such policies, we analyze the behavior of selected asset prices over short periods surrounding central bank statements or other types of financial or economic news and estimate "noarbitrage" models of the term structure for the United States and Japan.  There is some evidence that central bank communications can help to shape public expectations of future policy actions and that asset purchases in large volume by a central bank would be able to affect the price or yield of the targeted asset"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 9/14/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.