Fed research paper finds uncertainty more damaging at the zero lower bound

federal reserve

Taisuke Nakata, a researcher at the US Federal Reserve's division of research and statistics, has published a paper examining the combined effects of monetary policy constrained by the zero lower bound, and the presence of uncertainty in an economy.

Nakata argues that although the zero lower bound and uncertainty are perhaps the two biggest factors in the US's ‘Great Recession', they have until now largely been examined in isolation.

Nakata uses the exogenous variation in the household's

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: