Mavroeidis, Sophocles - In: Econometrica 89 (2021) 6, pp. 2855-2885
I show that the zero lower bound (ZLB) on interest rates can be used to identify the causal effects of monetary policy. Identification depends on the extent to which the ZLB limits the efficacy of monetary policy. I propose a simple way to test the efficacy of unconventional policies, modeled...