shock. The current low interest rate environment limits the tools the central bank can use to stabilize the economy, while …

monetary tightening, further debt accumulation, and additional inflationary pressure. Thus, the economy will go through a …

in the US economy at the zero lower bound. We first estimate a Markov-switching VAR to highlight that a zero …

What are the economic effects of an interest rate cut when an economy is in the midst of a financial crisis? Under what … ffects? We answer these questions in a general class of open economy models, where a financial crisis is modeled as a time … the traded good sector and in adjusting the rate at which that output can be used in other parts of the economy, then a …