Global vs. Local Liquidity Traps
2
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
This paper examines demand spillovers in a two country open economy model to a demand shock newline (emanating from a single, source country) sufficiently large to push one or both countries into a liquidity trap. The zero lower bound on nominal interest rates keeps the central bank in the source country from fully adjusting monetary policy. We describe a two country New Keynesian model with sufficient home bias so as to exclude symmetric movements in response to demand shocks. We study conditions under which a liquidity trap in one country might spillover to a trading partner. We study, under which conditions, a liquidity trap in one country will lead to a liquidity trap in another country. We also show conditions under which a liquidity trap in another country can spillover into an output expansion in a trading partner.
Abstract
This paper examines demand spillovers in a two country open economy model to a demand shock newline (emanating from a single, source country) sufficiently large to push one or both countries into a liquidity trap. The zero lower bound on nominal interest rates keeps the central bank in the source country from fully adjusting monetary policy. We describe a two country New Keynesian model with sufficient home bias so as to exclude symmetric movements in response to demand shocks. We study conditions under which a liquidity trap in one country might spillover to a trading partner. We study, under which conditions, a liquidity trap in one country will lead to a liquidity trap in another country. We also show conditions under which a liquidity trap in another country can spillover into an output expansion in a trading partner.
참고문헌 (16)
- Auerbach, Alan, "The Role for Open Market Operations in a Liquidity Trap", American Economic Review, 95(1), pp.110~137 (2005)
- Beetsma, Roel, "Monetary and Fiscal Policy Interactions in a Micro-Founded Model of a Monetary Union", Journal of International Economics, 67(2), pp.320~352 (2005)
- The Effect of Foreign Shocks when Interest Rates Are at Zero, "Bodenstein, Martin", Board of Governors of the Federal Reserve System, ~ (2009)
- Cook, David, "Optimal Fiscal Policy in a World Liquidity Trap", European Economic Review, 55(4), pp.443~462 (2011)
- Eggertson, Gauti, "The Zero Interest Bound and Optimal Monetary Policy", Brookings Papers on Economic Activity, 34(1), pp.139~235 (2003)
- Optimal Monetary and Fiscal Policy in a Liquidity Trap, "Eggertson, Gauti", ISOM, ~ (2005)
- Eggertsson, Gauti, "What Fiscal Policy is Effective at Zero Interest Rates" (2009), FRBNY
- Engel, Charles, "Currency Misalignments and Optimal Monetary Policy: A Reinvestigation" (2010), mimeo
- Fujiwara, Ippei, "The Zero Lower Bound and Monetary Policy in a Global Economy: A Simple Analytical Investigation", International Journal of Central Banking, 6(1), pp.103~132 (2010)
- Global Liquidity Trap. IMES Discussion Paper Series 10-E-11, Institute for Monetary and Economic Studies, "Fujiwara, Ippei", Institute for Monetary and Economic Studies(IMES), Bank of Japan, ~ (2010)
- Jeanne, Olivier, "The Global Liquidity Trap" (2009), mimeo
- Krugman, Paul, "It's Baaack: Japan's Slump and the Return of the Liquidity Trap", Brookings Papers on Economic Activity, 29(2), pp.137~187 (1998)
- Jung, Taehun, "The Zero Bound on Nominal Interest Rates and Optimal Monetary Policy", Journal of Money Credit and Banking, 37(5), pp.813~835 (2005)
- 박재하, "Global Financial Crisis: Background, Prospects, and Its Impacts on Korea", Seoul Journal of Economics, 22(1), pp.77~94 (2009), 경제연구소
- Roel, Beetsma, "Monetary and Fiscal Policy Interac- tions in a Micro-Founded Model of a Monetary Union", Journal of International Economics, 67(2), pp.320~352 (2005)
- Woodford, M, "Simple Analytics of the Government Expenditure Multiplier", American Economic Journal: Macroeconomics, 3(1), pp.1~35 (2011)