000			02687cam a22003497 4500
001			w11056
003			NBER
005			20211020112626.0
006			m o d
007			cr cnu||||||||
008			210910s2005 mau fo 000 0 eng d
100	1		_aMcCallum, Bennett T.
245	1	2	_aA Monetary Policy Rule for Automatic Prevention of a Liquidity Trap / _cBennett T. McCallum.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2005.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w11056
500			_aJanuary 2005.
520	3		_aIn analyses of "liquidity trap" problems associated with the zero lower bound (ZLB) on nominal interest rates, it is important to emphasize the difference between policy rule changes, intended to help escape an existing ZLB situation, and maintained policy rules designed so as to avoid ZLB situations. Analysis assuming that rule changes would lead to a new RE equilibrium immediately seems implausible. Accordingly, the paper focuses on the design of a rule that should retain stabilization effectiveness even if the economy is temporarily shocked into a ZLB situation.
520	3		_aThe rule considered is one that uses as its instrument variable a weighted average of an interest rate and the rate of depreciation of the nominal exchange rate. With a small weight attached to the depreciation term, it will be nearly irrelevant in normal situations but call for strong adjustments when the ZLB condition prevails. Stabilizing properties of this "MC" rule are studied within a small open economy model developed by McCallum and Nelson. Results indicate that under ZLB conditions the MC rule will provide strong stabilizing policy actions yet, under conditions such that the ZLB constraint is not relevant, the MC rule need not hinder monetary policy.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aE52 - Monetary Policy _2Journal of Economic Literature class.
690		7	_aE3 - Prices, Business Fluctuations, and Cycles _2Journal of Economic Literature class.
690		7	_aF41 - Open Economy Macroeconomics _2Journal of Economic Literature class.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w11056.
856	4	0	_uhttps://www.nber.org/papers/w11056
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w11056
942			_2ddc _cW-PAPER
999			_c337108 _d295670