STABILIZATION POLICY AT THE ZERO LOWER BOUND

• 成果类型: Article
• 署名作者: Boel, Paola; Waller, Christopher J.
• 署名单位: Sveriges Riksbank; Federal Reserve System - USA; Federal Reserve Bank - St. Louis; Deakin University
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12396
• 发表日期: 2019
• 页码: 1539-1563
• 关键词: optimal monetary-policy; precautionary savings; credit; money; equilibrium; purchases; FRAMEWORK; guidance

摘要

We construct a monetary economy with aggregate liquidity shocks and heterogeneous idiosyncratic preference shocks. In this environment, not all agents are satiated at the zero lower bound (ZLB) even when the Friedman rule is the best interest-rate policy the central bank can implement. As a consequence, central bank stabilization policy, which takes the form of repo arrangements in response to aggregate demand shocks, temporarily relaxes the liquidity constraint of impatient agents at the ZLB. Due to a pecuniary externality, this policy may have beneficial general equilibrium effects for patient agents even if they are unconstrained in their money balances.