Berentsen, Aleksander; Marchesiani, Alessandro; Waller, … - Institut für Volkswirtschaftslehre, … - 2013
An increasing number of central banks implement monetary policy via a channel system or a floor system. We construct a … general equilibrium model to study the properties of these systems. We find that a floor system is weakly optimal if and only … if the target rate satisfies the Friedman rule. Unfortunately, the optimal floor system requires either transfers from …