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Conference Paper
Overcoming the zero bound on interest rate policy
The paper proposes three options for overcoming the zero bound on interest rate policy: a carry tax on money, open market operations in long bonds, and monetary transfers. A variable carry tax on electronic bank reserves could enable a central bank to target negative nominal interest rates. A carry tax could be imposed on currency to create more leeway to make interest rates negative. Quantitative policy--monetary transfers and open market purchases of long bonds--could stimulate the economy by creating liquidity broadly defined. A central bank needs more fiscal support than usual from the ...
Conference Paper
Federal Reserve asset acquisition: a proposal, panel discussion
Conference Paper
Monetary policy after the crisis - commentary
Conference Paper
Interest rate policy and the inflation scare problem: 1979-1992
Conference Paper
Narrow money, broad money, and the transmission of monetary policy
Journal Article
The monetary policy debate since October 1979: lessons for theory and practice
Monetary theory and policy have been revolutionized in the two decades since October 1979, when the Federal Reserve under the leadership of Paul Volcker moved to stabilize inflation and bring it down. On the side of practice, the decisive factor was the demonstration that monetary policy could acquire and maintain credibility for low inflation, and improve the stability of both inflation and output relative to potential. On the theory side, the introduction of rational expectations was decisive because it enabled models of monetary policy to incorporate forward-looking elements of aggregate ...
Journal Article
Commentary on "Announcements and the role of policy guidance"