Journal of Monetary Economics 2015 DOI: 10.1016/j.jmoneco.2015.04.002 View full text
Huberto M. Ennis

Abstract: In the last few years, the U.S. economy has experienced very low nominal interest rates with the short-maturity end of the yield curve pegged effectively at the zero lower bound. At the same time, inflation has been positive and most of the time fluctuating in a range of 1 to 2 percent on an annual basis. The obvious implication of these facts is that the effective real interest rate has been very low (and even negative, depending on maturities) for a considerable period of time. Andolfatto and Williamson set…

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