Verona, F.; Martins, M. M. F.; Drumond, I. - In: International Journal of Central Banking 9 (2013) 3, pp. 78-124
Motivated by the U.S. events of the 2000s, we address whether a too low for too long interest rate policy may generate a boom-bust cycle. We simulate anticipated and unanticipated monetary policies in state-of-the-art DSGE models and in a model with bond financing via a shadow banking system, in...