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...

The chemicals industry is a major contributor to the EU economy in terms of output, value-added, employment, and (net) exports. The sector supplies products to almost all downstream industry sectors and is an important engine for innovation for the wider economy. It plays a key role in...