Measuring the Macroeconomic Impact of Monetary Policy at the Zero Lower Bound
Jing Cynthia Wu () and
Fan Dora Xia
Journal of Money, Credit and Banking, 2016, vol. 48, issue 2-3, 253-291
This paper employs an approximation that makes a nonlinear term structure model extremely tractable for analysis of an economy operating near the zero lower bound for interest rates. We show that such a model offers an excellent description of the data compared to the benchmark model and can be used to summarize the macroeconomic effects of unconventional monetary policy. Our estimates imply that the efforts by the Federal Reserve to stimulate the economy since July 2009 succeeded in making the unemployment rate in December 2013 1% lower, which is 0.13% more compared to the historical behavior of the Fed.
References: Add references at CitEc
Citations: View citations in EconPapers (254) Track citations by RSS feed
Downloads: (external link)
Working Paper: Measuring the Macroeconomic Impact of Monetary Policy at the Zero Lower Bound (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wly:jmoncb:v:48:y:2016:i:2-3:p:253-291
Access Statistics for this article
Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West
More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley Content Delivery ().