Global liquidity trap

• 成果类型: Article
• 署名作者: Fujiwara, Ippei; Nakajima, Tomoyuki; Sudo, Nao; Teranishi, Yuki
• 署名单位: Australian National University; Kyoto University; Keio University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2013.08.004
• 发表日期: 2013
• 页码: 936-949
• 关键词: Zero interest rate policy; Two-country model; International spillover; Monetary policy cooperation

摘要

How should monetary policy respond to a global liquidity trap, where the two countries may fall into a liquidity trap simultaneously? Using a two-country New Open Economy Macroeconomics model, we first characterize optimal monetary policy, and show that the optimal rate of inflation in one country is affected by whether or not the other country is in a liquidity trap. We next examine how well the optimal monetary policy is approximated by relatively simple monetary policy rules. The interest-rate rule targeting the producer price index performs well in this respect. (C) 2013 Elsevier B.V. All rights reserved.