Dynamic Debt Deleveraging and Optimal Monetary Policy

• 成果类型: Article
• 署名作者: Benigno, Pierpaolo; Eggertsson, Gauti B.; Romei, Federica
• 署名单位: Luiss Guido Carli University; Brown University; Stockholm School of Economics
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20160124
• 发表日期: 2020
• 页码: 310-350
• 关键词: fiscal-policy; STABILITY

摘要

This paper proposes a postcrisis New Keynesian model that incorporates agent heterogeneity in borrowing and lending with a minimum set of assumptions. Unlike the standard framework, this model makes the natural rate of interest endogenous and dependent on macroeconomic policy. The main application is to study optimal monetary policy at the zero lower bound (ZLB). Such policy succeeds in raising the natural rate of interest by creating an environment that speeds up deleveraging and thus endogenously shortens the crisis and the duration of binding ZLB. Inflation should be front-loaded and should overshoot its long-term target during the ZLB episode.