Lower for longer: The case of the ECB

Tilman Bletzinger and Volker Wieland

Economics Letters, 2017, vol. 159, issue C, 123-127

Abstract: Research has suggested that monetary policy acts asymmetrically near zero interest rates. We match past ECB decisions with a simple forecast-based reaction function. The policy easing that started in 2013 has led to a deviation indicating a “lower for longer” approach.

Keywords: Monetary policy; Interest rates; European Central Bank; Forward guidance; Zero lower bound (search for similar items in EconPapers)
JEL-codes: E43 E47 E52 E58 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:159:y:2017:i:c:p:123-127

DOI: 10.1016/j.econlet.2017.06.030

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