01634cas a2200253 a 4500 AALejournalIMF008041 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451859461 1018-5941 BD-DhAAL BD-DhAAL Laxton, Douglas. The Zero Interest Rate Floor (ZIF) and its Implications for Monetary Policy in Japan / Douglas Laxton, Benjamin Hunt. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Hunt, Benjamin. IMF Working Papers; Working Paper ; No. 2001/186 Full text available on IMF http://elibrary.imf.org/view/journals/001/2001/186/001.2001.issue-186-en.xml IMF e-Library