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- handle: 10670/1.255z7x
- halshs: halshs-03922385
- doi: 10.2307/48718081
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Mots-clés
liquidity trap zero lower bound heterogeneous agents optimal policy E - Macroeconomics and Monetary Economics/E.E3 - Prices, Business Fluctuations, and Cycles/E.E3.E31 - Price Level • Inflation • Deflation E - Macroeconomics and Monetary Economics/E.E4 - Money and Interest Rates/E.E4.E41 - Demand for Money E - Macroeconomics and Monetary Economics/E.E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit/E.E5.E52 - Monetary PolicySujets proches
Specie Monetary question Money, Primitive Currency Standard of valueCiter ce document
Xavier Ragot, « Optimal Monetary Policy in a Liquidity Trap with Heterogeneous Agents », Archive ouverte de Sciences Po (SPIRE), ID : 10.2307/48718081
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Résumé
This paper derives the optimal money injection at the Zero Lower Bound (ZLB), in a tractable model where households hold heterogeneous money holdings due to explicit financial frictions, such as limited participation and temporary binding credit constraints. This framework is motivated by recent empirical findings. A deleveraging shock generates deflationary pressure and a fall in the real interest rate, pushing the economy to the ZLB. The main result is that open-market operations can stabilize the economy at the ZLB whereas lump-sum money transfers cannot. Moreover, an optimal money injection does not avoid the economy being at the ZLB.