TY  - UNPD
A1  - Coenen, Günter
A1  - Wieland, Volker
T1  - Exchange-rate policy and the zero bound on nominal interest
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2004,14
N2  - In this paper, we study the effectiveness of monetary policy in a severe recession and deflation when nominal interest rates are bounded at zero. We compare two alternative proposals for ameliorating the effect of the zero bound: an exchange-rate peg and price-level targeting. We conduct this quantitative comparison in an empirical macroeconometric model of Japan, the United States and the euro area. Furthermore, we use a stylized micro-founded two-country model to check our qualitative findings. We find that both proposals succeed in generating inflationary expectations and work almost equally well under full credibility of monetary policy. However, price-level targeting may be less effective under imperfect credibility, because the announced price-level target path is not directly observable. Klassifikation: E31, E52, E58, E61
T3  - CFS working paper series - 2004, 14 
KW  - monetary policy rules
KW  - zero-interest-rate bound
KW  - liquidity trap
KW  - rational expectations
KW  - nominal rigidities
KW  - exchange rates
KW  - Geldpolitik
KW  - Zerobond
KW  - Nominalzins
KW  - Rezession
KW  - Deflation
Y1  - 2004
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/4426
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-10651
ER  -