The Zero Interest Rate Floor (ZIF) and its Implications for Monetary Policy in Japan /

This paper uses the IMF's macroeconomic model MULTIMOD to examine the implications of the zero-interest-rate floor (ZIF) for the design of monetary policy in Japan. Similar to findings in other studies, targeting rates of inflation lower than 2.0 percent significantly increases the likelihood o...

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Автор: Laxton, Douglas
Інші автори: Hunt, Benjamin
Формат: Журнал
Мова:English
Опубліковано: Washington, D.C. : International Monetary Fund, 2001.
Серія:IMF Working Papers; Working Paper ; No. 2001/186
Онлайн доступ:Full text available on IMF
Опис
Резюме:This paper uses the IMF's macroeconomic model MULTIMOD to examine the implications of the zero-interest-rate floor (ZIF) for the design of monetary policy in Japan. Similar to findings in other studies, targeting rates of inflation lower than 2.0 percent significantly increases the likelihood of the ZIF becoming binding. Systematic monetary policy strategies that respond strongly to stabilize output and inflation, or that incorporate some explicit price-level component, can help to mitigate the implications of the ZIF.
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Фізичний опис:1 online resource (37 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students