Ngo, Phuong V. - In: Journal of Economic Dynamics and Control 45 (2014) C, pp. 44-65
This paper investigates optimal discretionary monetary policy under the zero lower bound on the nominal interest rate (ZLB) in the case of a distorted steady state due to monopoly and taxation. Solving a fully nonlinear micro-founded (FNL) model using a global method, I find that the central...