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Monetary Policy

Working Paper

The Reversal Interest Rate

WP 22-28 – We propose that the effective lower bound on monetary policy is the reversal interest rate, below which further rate cuts reduce bank lending. Our model demonstrates that this rate exists and estimates it is roughly -1% for the Euro area.

Featured Work

Monetary Policy Report: Using Rules for Benchmarking, September 2022

This special report highlights ongoing work to benchmark the stance of monetary policy using a range of policy rules that are widely employed in studies of monetary economics.

Monetary Policy

Article

Does Monetary Policy Benefit Certain Households at the Expense of Others?

Research in Focus — Monetary policy is expected to help all households in society. When households are diverse, and thus are affected by monetary policy differently, how can monetary policy help all of them?

Monetary Policy

Article

Make-up Strategies for Monetary Policy

Economic Insights — We take a closer look at the Federal Reserve's new strategy to lessen the danger of persistently low inflation.