The Zero Interest Rate Floor (ZIF) and its Implications for Monetary Policy in Japan
| Autor: | Benjamin L Hunt, Douglas Laxton |
|---|---|
| Rok vydání: | 2001 |
| Předmět: |
Inflation
Inflation targeting media_common.quotation_subject Monetary policy Monetary economics Interest rate Central banks and their policies Japan Potential output Monetary policy rules liquidity trap uncertainty inflation inflation target price level Uncertainity Liquidity trap Economics General Earth and Planetary Sciences Price level Real interest rate General Environmental Science media_common |
| Popis: | 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. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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