Issues Regarding the Use of the Policy Rate Tool

Jeffrey Campbell, Thomas King, Anna Orlik and Rebecca Zarutskie
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Anna Orlik: https://www.federalreserve.gov/econres/anna-orlik.htm

No 2020-070, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: We review two nonstandard uses of the policy rate tool, which provide additional stimulus when interest rates are close to or at the effective lower bound—forward guidance and negative interest rate policy. In particular, we survey the use of these tools since the star otf the Great Recession, review evidence of their effectiveness, and discuss key considerations that confront monetary policymakers while using them.

Keywords: Monetary policy; Effective lower bound; Forward guidance; Central bank communication; Negative interest rate policy (search for similar items in EconPapers)
JEL-codes: E32 E43 E44 E52 E58 (search for similar items in EconPapers)
Pages: 38
Date: 2020-08-27
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfe:2020-70

DOI: 10.17016/FEDS.2020.070

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