Limitations on the Effectiveness of Forward Guidance at the Zero Lower Bound

By Andrew T. Levin, D. López-Salido, Edward Nelson, Tack Yun. 2012

129 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/d37d5661bdc3c7b385b441a3dbd9a5fd25695b40

Citations in the corpus

• Optimal Monetary Stabilization Policy (2010, background): “I allow for exogenous variations in both the tax rate and the wage markup in order to include the possibility of “pure cost-push shocks” that affect equilibrium pricing behavior while implying no change in the efficient allocation of resources.(47) Substituting the assumed functional forms for prefe”
• Inflation and Output in New Keynesian Models with a Transient Interest Rate Peg (2012, unknown): “We also consider a deterministic evolution of this disturbance that geometrically declines towards zero, similar to the autoregressive shock in [10].”