Eggertsson, Gauti B.; Woodford, Michael - In: Brookings Papers on Economic Activity 34 (2003) 1, pp. 139-235
This paper considers the consequences for monetary policy of the zero floor for nominal interest rates. The zero bound can be a significant constraint on the ability of a central bank to combat deflation. The paper shows, in the context of an intertemporal equilibrium model, that open-market...
