Zero lower bound: is it a problem in the euro area?

Günter Coenen

No 269, Working Paper Series from European Central Bank

Abstract: This paper presents the results of a quantitative study of the implications of the zero lower bound on nominal interest rates which was undertaken in the context of the review of the ECB's monetary policy strategy in Spring 2003. Focusing on the euro area, the paper provides an assessment of the likelihood that the short-term nominal interest rate may be constrained at zero and quantifies how the zero-bound constraint may affect the dynamic behaviour of key macroeconomic variables such as the short-term nominal interest rate, annual inflation and output JEL Classification: E31, E52, E58, E61

Keywords: euro area; interest rate rules; nominal rigidities; price stability; zero-interest-rate bound (search for similar items in EconPapers)
Date: 2003-09
Note: 241047
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (48)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2003269

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