A Toolkit for Solving Models with a Lower Bound on Interest Rates of Stochastic Duration

Eggertsson, Gauti B.; Egiev, Sergey; Lin, Alessandro; Platzer, Josef; Riva, Luca

doi:10.2139/ssrn.3705088

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Fiscal Spillovers At the Zero Lower Bound1

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2020

2021

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Cited by 2 publications

(2 citation statements)

References 8 publications

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“…Here, we extend the multi-country model to allow for a zero bound constraint on the policy rate. Following Cook and Devereux (2019) and Eggertsson, Egiev, Lin, Platzer and Riva (2021), we investigate the responses of output to an expansionary fiscal spending when the nominal interest response to inflation is temporarily suspended .…”

Section: Fiscal Spillovers At the Zero Lower Boundmentioning

confidence: 99%

Production Networks and International Fiscal Spillovers

Devereux

Gente²,

2020

SSRN Journal

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Section: Fiscal Spillovers At the Zero Lower Boundmentioning

confidence: 99%

Production Networks and International Fiscal Spillovers

Devereux

Gente²,

2020

SSRN Journal

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“…Haberis and Lipi ńska (2020) as the terminology of fixed length FG suggested byEggertsson, Egiev, Lin, Platzer and Riva (2020). FollowingHaberis and Lipi ńska (2020), we label several specifications of FG policies.…”

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confidence: 99%

The interaction of forward guidance in a two-country new Keynesian model

Ida¹,

Iiboshi²

2021

Preprint

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Using the method of Haberis and Lipi ńska (2020), this paper explores the effect of forward guidance (FG) in a two-country New Keynesian (NK) economy under the zero lower bound (ZLB). We simulate the effect of different length of FG or the zero interest rate policy under the circumstance of the global liquidity trap. We show that the size of the intertemporal elasticity of substitution plays an important role in determining the beggar-thy-neighbor effect or the prosperthy-neighbor effect of home FG policy on the foreign economy. And in the former case, by targeting a minimum welfare loss of the individual country alone but not global welfare loss, two central banks can perform interesting FG bargaining in which they cooperatively adopt the same length of FG or strategically deviate from cooperation.

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A Toolkit for Solving Models with a Lower Bound on Interest Rates of Stochastic Duration

Cited by 2 publications

References 8 publications

Production Networks and International Fiscal Spillovers

Production Networks and International Fiscal Spillovers

The interaction of forward guidance in a two-country new Keynesian model

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