Berentsen, Aleksander; Marchesiani, Alessandro; Waller, … - In: Review of Economic Dynamics 17 (2014) 3, pp. 523-542
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....
