This paper proposes an empirical dynamic stochastic general equilibrium (DSGE) framework to measure the degree of monetary policy accommodation when the nominal interest rate is zero. The framework employs a hypothetical DSGE model in which the nominal interest rate can be lowered below zero...

Since the global financial crisis, macro stress testing has attracted much attention in many countries as a method to evaluate potential risks of financial system. The Bank of Japan has conducted macro stress testing with various scenarios reflecting financial and economic conditions at each...

policy rate in the 2000s.