ECB - to investigate the consequences of the zero lower bound on nominal interest rates for the evolution of risks to … illustrate that, with nominal interest rates close to zero, forward guidance in the form of a time-based conditional commitment … to keep interest rates low for longer can be successful in mitigating downside risks to price stability. However, we find …

criticism for this decision. The case against including money in the central banks interest rate rule is based on a standard … decades. In this paper, we develop a justification for including money in the interest rate rule by allowing for imperfect … knowledge regarding unobservables such as potential output and equilibrium interest rates. We formulate a novel characterization …

lower domestic interest rate expands the supply of credit in the domestic but not in the foreign currency. A lower foreign … interest rate on the other hand expands lending by lowly versus highly capitalized banks relatively more in the foreign than in …

expectations. We derive an interest rate rule and show empirically that it approximates the way the Bundesbank conducted monetary …

banks interest rate rule is based on a standard model of the monetary transmission process that underlies many contributions … money in the interest rate rule by allowing for imperfect knowledge regarding unobservables such as potential output and … equilibrium interest rates. We formulate a novel characterization of ECB-style monetary cross-checking and show that it can …