Global Imbalances and Policy Wars at the Zero Lower Bound

• 成果类型: Article
• 署名作者: Caballero, Ricardo J.; Farhi, Emmanuel; Gourinchas, Pierre-Olivier
• 署名单位: Massachusetts Institute of Technology (MIT); National Bureau of Economic Research; National Bureau of Economic Research; National Bureau of Economic Research; University of California System; University of California Berkeley
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdab015
• 发表日期: 2021
• 页码: 2570-2621
• 关键词: financial integration; liquidity trap; monetary

摘要

This article explores the consequences of extremely low real interest rates in a world with integrated but heterogeneous capital markets, nominal rigidities, and an effective lower bound [a zero lower bound (ZLB) for simplicity]. We establish four main results: (1) At the ZLB, creditor countries export their recession abroad, which we illustrate with a new Metzler diagram in quantities; (2) Beggar-thy-neighbour currency and trade wars provide stimulus to the undertaking country at the expense of other countries; (3) (Safe) public debt issuances and increases in government spending anywhere are expansionary everywhere; and (4) When there is a scarcity of safe assets, net issuers of these assets import the recession from abroad.