Since central banks have limited information concerning the transmission channel of monetary policy, they are faced with the difficult task of simultaneously controlling the policy target and estimating the impact of policy actions. A tradeoff between estimation and control arises because policy...

Since central banks have limited information concerning the transmission channel of monetary policy, they are faced with the difficult task of simultaneously controlling the policy target and estimating the impact of policy actions. A tradeoff between estimation and control arises because policy...

Im Euroraum wird die Einführung eines digitalen Euro bereits seit Längerem diskutiert. Die Untersuchungsphase der Europäischen Zentralbank lief bereits seit Oktober 2021 und ging im Oktober 2023 in eine Vorbereitungsphase über. In anderen Ländern wird digitales Zentralbankgeld bereits...

Since central banks have limited information concerning the transmission channel of monetary policy, they are faced with the difficult task of simultaneously controlling the policy target and estimating the impact of policy actions. A tradeoff between estimation and control arises because policy...

Im Euroraum wird die Einführung eines digitalen Euro bereits seit Längerem diskutiert. Die Untersuchungsphase der Europäischen Zentralbank lief bereits seit Oktober 2021 und ging im Oktober 2023 in eine Vorbereitungsphase über. In anderen Ländern wird digitales Zentralbankgeld bereits...

Since central banks have limited information concerning the transmission channel of monetary policy, they are faced with the difficult task of simultaneously controlling the policy target and estimating the impact of policy actions. A tradeoff between estimation and control arises because policy...

This paper employs stochastic simulations of a small structural rational expectations model to investigate the consequences of the zero bound on nominal interest rates. We find that if the economy is subject to stochastic shocks similar in magnitude to those experienced in the U.S. over the...

In this paper, we study the effectiveness of monetary policy in a severe recession and deflation when nominal interest rates are bounded at zero. We compare two alternative proposals for ameliorating the effect of the zero bound: an exchange-rate peg and price-level targeting. We conduct this...