Bernanke's no-arbitrage argument revisited: can open market operations in real assets eliminate the liquidity trap?
Loading...
Date
2016
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Banco Central de Chile
Abstract
Description
This paper looks back on the professional consensus about monetary policy at the zero bound prior to the 2008 crisis and proposes a calibrated model that provides one interpretation to explain why it was somewhat off base. The general consensus in the economics profession in the late 1990s when Japan was experiencing difficulties due to deflation and the zero bound was that increasing the money supply in one of a variety of ways was a simple and straightforward answer to stimulating aggregate demand.
Keywords
LIQUIDEZ (ECONOMÍA), POLÍTICA MONETARIA, CRISIS ECONÓMICA 2008