Fiscal and monetary stabilization policy at the zero lower bound

Highlights. •. Limited foresight reduces the power of forward guidance, but it remains useful. •. Fiscal transfers are more effective when foresight is limited.

Fiscal and Monetary Stabilization Policy at the Zero Lower Bound

Fiscal and Monetary Stabilization Policy at the Zero Lower Bound: Consequences of Limited. Foresight. Michael Woodford and Yinxi Xie. NBER Working Paper No ...

Fiscal and Monetary Stabilization Policy at the Zero Lower Bound

We also show that a higher level of welfare is generally possible if both monetary and fiscal authorities commit themselves to history-dependent ...

Fiscal and Monetary Stabilization Policy at the Zero Lower Bound

We show that fiscal transfers can be powerful in reducing the contractionary impact of a financial disturbance, and can even completely stabilize both aggregate ...

Fiscal and Monetary Stabilization Policy at the Zero Lower Bound

Fiscal and Monetary Stabilization Policy at the Zero Lower Bound: Consequences of Limited Foresight. ∗. Michael Woodford. †. Columbia ...

Fiscal and Monetary Stabilization Policy at the Zero Lower Bound

Because Ricardian Equivalence no longer holds when planning horizons are finite (even when relatively long), we find that fiscal transfers can ...

Fiscal and Monetary Stabilization Policy at the Zero Lower Bound

This paper reconsiders the degree to which macroeconomic stabilization is possible when the zero lower bound is a relevant constraint on the effectiveness ...

Unconventional fiscal and monetary policy at the zero lower bound

Effective macroeconomic stabilisation in the vicinity of the lower bound requires both unconventional monetary and fiscal policies.

Fiscal Policy at the Zero Lower Bound - Intereconomics

At the ZLB, it is the quality, more than the quantity of debt and deficits, that is the main determinant of fiscal space. The pitfalls of the Stability and ...

Fiscal and monetary policy interactions in a low interest rate world

Equilibrium real interest rates have declined significantly over recent decades. As a consequence, the zero lower bound (ZLB) on policy rates ...

Monetary Policy at the Zero Lower bound: Putting Theory into Practice

In “Monetary Policy at the Zero Lower Bound” author Williams, who has been president of the Federal Reserve Bank of San Francisco since March 2011, ...

STABILIZATION POLICY AT THE ZERO LOWER BOUND - jstor

We construct a monetary economy with aggregate liquidity shocks and heterogeneous idiosyncratic preference shocks. In this environment, not all agents are ...

Fiscal and Monetary Stabilization Policy at the Zero Lower Bound

Fiscal and Monetary Stabilization Policy at the Zero Lower Bound: Consequences of Limited Foresight ; Michael Woodford · Electronic eBook · Available in NBER - ...

Policy Options at the Zero Lower Bound When Foresight is Limited

We reconsider several monetary and fiscal policies that have been proposed as tools of stabilization policy when conventional interest-rate policy is ...

Unconventional Fiscal Policy at the Zero Bound

When the zero lower bound on nominal interest rates binds, monetary policy cannot provide ap- ... monetary policy achieves perfect economic stabilization ...

Fiscal Policy at the Zero Lower Bound without Rational Expectations

The less sophisticated people are, the smaller the government-spending multiplier is. Our analysis strengthens the case for using tax policy to stabilize output ...

Comments on “Fiscal and monetary stabilization policy at the

Comments on “Fiscal and monetary stabilization policy at the zero lower bound: Consequences of limited foresight” by Woodford and Xie. Author & abstract ...

Monetary Policy, Financial Stability, and the Zero Lower Bound

Replication data for: Monetary Policy, Financial Stability, and the Zero Lower Bound · Published Versions · Export Metadata. Dublin Core · DDI 2.5.

Monetary Policy, Financial Stability, and the Zero Lower Bound

I will focus primarily on three related issues associated with the zero lower bound (ZLB) on nominal interest rates and the nexus between monetary policy and ...

STABILIZATION POLICY AT THE ZERO LOWER BOUND - Boel - 2019

We construct a monetary economy with aggregate liquidity shocks and heterogeneous idiosyncratic preference shocks.