Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212326 
Year of Publication: 
2015
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 18/2015
Publisher: 
Bank of Finland, Helsinki
Abstract: 
​Many central banks have lowered their interest rates close to zero in response to the crisis since 2008. In standard monetary models the zero lower bound (ZLB) constraint implies the existence of a second steady state in addition to the inflation-targeting steady state. Large scale asset purchases (APP) have been used as a tool for easing of monetary policy in the ZLB regime. I provide a theoretical discussion of these issues using a stylized general equilibrium model in a global nonlinear setting. I also review briefly the empirical literature about effects of APP's.
JEL: 
E63
E52
E58
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-061-3
Document Type: 
Working Paper

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