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The zero lower bound on nominal interest rates has constrained the Federal Reserve’s setting of the overnight federal funds rate for over three years running. According to many macroeconomic models, such an extended period of being stuck at the zero bound has important implications for the...
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This paper forms the basis for Janet Yellen's Presidential address to the Western Economic Association International, delivered July 1, 2004, in Vancouver, British Columbia.
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Presentation to the Financial Women’s Association of San Francisco, San Francisco, CA, October 15, 2012
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price economy with monopolistic distortions. Monetary policy determines nominal interest rates and fiscal policy provides …
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-maximizing levels. In effect, a small stock of debt combined with restrictions on a central bank’s portfolio can put the economy on the … inflation rates implied by a decline in the stock of government debt outstanding. Unless the economy is on the Pareto inferior …
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