On the empirical (ir)relevance of the zero lower bound constraint
Mostra el registre complet Registre parcial de l'ítem
- dc.contributor.author Debortoli, Davide
- dc.contributor.author Galí, Jordi, 1961-
- dc.contributor.author Gambetti, Luca
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2020-05-25T09:26:48Z
- dc.date.available 2020-05-25T09:26:48Z
- dc.date.issued 2018-01-02
- dc.date.modified 2020-05-25T09:25:29Z
- dc.description.abstract We evaluate the hypothesis that the zero lower bound (ZLB) constraint was, in practice, irrelevant during the recent ZLB episode experienced by the U.S. economy (2009Q1-2015Q4). We focus on two dimensions of economic performance that were ex-ante likely to have been affected by a binding ZLB: (i) the volatility of macro variables and (ii) the economy s response to shocks. Using a variety of empirical methods, we find little evidence against the irrelevance hypothesis, with our estimates suggesting that the responses of output, inflation and the long-term interest rate were hardly affected by the binding ZLB constraint. We show how a shadow interest rate rule (which we take as a proxy for forward guidance) can reconcile our empirical findings with the predictions of a simple New Keynesian model with a ZLB constraint.
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1594
- dc.identifier.citation NBER Macroeconomics Annual, volume 34, 2019
- dc.identifier.uri http://hdl.handle.net/10230/33875
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1594
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword regime changes
- dc.subject.keyword liquidity trap
- dc.subject.keyword unconventional monetary policies
- dc.subject.keyword time-varying structural vector-autoregressive models.
- dc.subject.keyword Macroeconomics and International Economics
- dc.title On the empirical (ir)relevance of the zero lower bound constraint
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper