This study analyzed monetary policy rules in a cost-channel economy with a zero lower
bound on nominal interest rates (ZLB). The cost channel reflects the supply-side effects of …

This paper analyzes the implementation of the optimal policies at the Zero Lower Bound
(ZLB) by the Taylor rule in the presence of a cost channel. We find that, the presence of a …

This paper investigates, in the case of the euro area, the standard assumption that the
liquidity trap steady state, which arises from the existence of the zero lower bound on the …

This paper analyzes optimal monetary policy under zero lower bound in the presence of cost
channel. Cost channel introduces trade-off between output and inflation when economy is …

This paper uses the Sims and Wu (2020) New Keynesian model to derive the optimal
combinations of forward guidance policies and quantitative easing (QE) at the Zero Lower …

This chapter reviews the new challenges of monetary policy in a context where inflation
control is no longer the sole objective of central banks and where the interest rate instrument …

Sufficiently persistent rise in nominal interest increases inflation rate in short-run. This short-
run comovement of nominal interest rate and inflation rate is known as Neo-Fisherianism …

Data shows that, the US Treasury has increasingly issued more long'term bonds to finance
expenditures in the periods of financial crisis, whose duration is comparatively higher than …

Economic outcomes are, through changes in the expectations of market participants, a key
determinant of asset prices. Inflation is of particular importance, and “has been the bane of …

The main aim of this study is to examine the behaviour of main macroeconomic variables
under some interest rate rules and a forward guidance rule in a cost channel economy1 in …