Avoiding Liquidity Traps

By Jess Benhabib, Stephanie Schmitt-Grohé, Martin Uribe. Journal of Political Economy, 2002

380 citations recorded by the source corpus.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/ee12f6c0ef259acfc9e62daf1a5d4beb273df286

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Michael Woodford
2. Cars H. Hommes
3. Klaus Adam
4. Roberto Billi
5. J. Gaĺı
6. Stephanie Schmitt-Grohé
7. Gauti B. Eggertsson
8. John H. Cochrane

Citations in the corpus

• Money Growth Monitoring and the Taylor Rule (2001, background): “They show that a policy which includes a commitment to switch to a money growth target in the event that the economy slips into a deflation may eliminate the deflation equilibrium.(5) In our analysis we consider other pathologies that can occur under a Taylor rule, and show how monetary monitoring c”
• The Deflation Bias and Committing to Being Irresponsible (2006, result): “In contrast to Benhabib, Schmitt-Grohe, and Uribe (2002) where deflation is due to self-fulfilling deflationary spirals.”
• Sovereign Risk, Fiscal Policy, and Macroeconomic Stability (2013, background): “Benhabib et al. (2002), for example, propose a fiscal policy setup that rules out liquidity traps by making the low-inflation steady state fiscally unsustainable.”
• The effectiveness of unconventional monetary policy at the zero lower bound : a cross-country analysis (2014, neutral): “[11] Benhabib, J.”
• Escaping from a Liquidity Trap and Deflation: The Foolproof Way and Others (2003, positive): “Although the zero lower bound prevents lowering the nominal interest rate below zero, the central bank can still expand the monetary base (Benhabib, Schmitt-Grohé and Uribe (2002); Bernanke (2000); Clouse et al. (2003); Meltzer (2001); Orphanides and Wieland (2000)).”
• The State of New Keynesian Economics: A Partial Assessment (2018, background): “In a companion paper, Benhabib et al. (2002) propose a set of alternative monetary and fiscal rules that can be activated when the economy enters a path leading to the liquidity trap steady state.”
• INTEREST RATE RULES AND MACROECONOMIC STABILITY UNDER HETEROGENEOUS EXPECTATIONS (2012, neutral): “We follow Benhabib et al. (2002), Woodford (2003), Cochrane (2005, 2010), and many others in describing a frictionless economy.”
• Escaping the Great Recession (2017, neutral): “Benhabib, SchmittGrohe, and Uribe (2001b) show that active monetary policy rules can lead to a liquidity trap, while Benhabib, Schmitt-Grohe, and Uribe (2002) explain how fiscal and monetary policies can be designed in order to rule out deflationary spirals.”
• Behavioral & Experimental Macroeconomics and Policy Analysis: A Complex Systems Approach (2018, background): “However, as emphasised by Benhabib et al. (2002) “active” Taylor rules imply the existence of a second low-inflation steady state (πL, cL), which is locally indeterminate under RE.”
• Monetary Policy and Heterogeneity: An Analytical Framework (2018, neutral): “Condition (33) rules out the occurrence of confidence-driven liquidity traps (Benhabib et al, 2002; Mertens and Ravn, 2014; ; see Bilbiie, 2018 for further discussion and analysis of these equilibria in connection with neo-Fisherian policies).”
• Determinacy and Identification with Taylor Rules (2007, methodology): “Benhabib et al. (2002), mirrored in Woodford (2003, sec.”