degree of loss aversion can explain this transmission pattern. To this end, I allow for loss averse depositors within a … from a negative deposit rate decreases with increasing: i) degrees of loss aversion; ii) levels of switching costs; and iii …

shows that the inconsistency of optimal policy comes from the inconsistency of the social loss function with the economic … structure. As a result, we delegate to the central bank a different loss function, which is consistent with the economic … structure. Under the delegated loss function, consistent policy proves optimal for the social welfare. We interpret the …

, or fiscal theory of the price level properties. …