Liquidity Traps with Global Taylor Rules

Research, Preprint OPEN
Schmitt-Grohé, Stephanie; Uribe, Martín;
(2001)
  • Publisher: New Brunswick, NJ: Rutgers University, Department of Economics
  • Subject: E31 | E52 | E63 | liquidity traps | Taylor rules | liquidity traps; Taylor rules ; zero bound on nominal interest rates; | zero bound on nominal interest rates | liquidity traps; Taylor rules; zero-bound on nominal interest rates
    • jel: jel:E31 | jel:E52 | jel:E63
      ddc: ddc:330

A key result of a recent literature that focuses on the global consequences of Taylor-type interest rate feedback rules is that such rules, in combination with the zero-bound on nominal interest rates, can lead to unintended liquidity traps. An immediate question posed ... View more
  • References (14)
    14 references, page 1 of 2

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