TY  - UNPD
A1  - Coenen, Günter
A1  - Wieland, Volker
T1  - The zero-interest-rate and the role of the exchange rate for monetary policy in Japan
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2003,09
N2  - In this paper we study the role of the exchange rate in conducting monetary policy in an economy with near-zero nominal interest rates as experienced in Japan since the mid-1990s. Our analysis is based on an estimated model of Japan, the United States and the euro area with rational expectations and nominal rigidities. First, we provide a quantitative analysis of the impact of the zero bound on the effectiveness of interest rate policy in Japan in terms of stabilizing output and inflation. Then we evaluate three concrete proposals that focus on depreciation of the currency as a way to ameliorate the effect of the zero bound and evade a potential liquidity trap. Finally, we investigate the international consequences of these proposals.
T3  - CFS working paper series - 2003, 09 
KW  - monetary policy rules
KW  - zero interest rate bound
KW  - liquidity trap
KW  - rational expectations
KW  - nominal rigidities
KW  - exchange rates
KW  - Japan
KW  - Geldpolitik
KW  - Wechselkurspolitik
KW  - Währungspolitik
KW  - Rentenmarkt
KW  - Zins
KW  - Liquiditätspräferenztheorie
KW  - Rationale Erwartung
KW  - Transmissionsmechanismus
Y1  - 2003
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/4474
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-10157
IS  - Version March 2003
PB  - CFS
CY  - Frankfurt am Main
ER  -