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Title:	On the empirical (ir)relevance of the zero lower bound constraint; _
Author:	Debortoli, Davide; Galí, Jordi, 1961-; Gambetti, Luca
Other authors:	Universitat Pompeu Fabra. Departament d'Economia i Empresa
Abstract:	We estimate a time-varying structural VAR that describes the dynamic responses of a number of U.S. macro variables to different identified shocks. We find no significant changes in the estimated responses over the period when the federal funds rate attained the zero lower bound (ZLB). This result is consistent with the hypothesis of "perfect substitutability" between conventional and unconventional monetary policies. Montecarlo simulations based on artificial time series generated from a standard New Keynesian model point to the validity of our empirical approach to detect the changes in equilibrium dynamics associated with ZLB episodes.
Subject(s):	-regime changes -liquidity trap -unconventional monetary policies -time-varying structural vector-autoregressive models. -Macroeconomics and International Economics
Rights:	L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons http://creativecommons.org/licenses/by-nc-nd/3.0/es/
Document type:	Working Paper
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