Monetary policy at the zero interest bound: A model comparison exercise

Ippei Fujiwara, Peter McAdam, John M. Roberts

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)


In this paper, we summarize the findings from zero-interest-bound simulation exercises conducted on the policy/forecasting models of the three major central banks. After imposing a fixed-period zero-interest-bound episode on each model, we consider common variations in the monetary-policy reaction function to minimize the macro-economic consequences of such a deflationary regime. Although there is some heterogeneity in the ranking of these remedial policies, reflecting the different properties of the models, we find that more aggressive policy rules and price-targeting rules are potentially candidates for robust monetary strategies. J. Japanese Int. Economies 20 (3) (2006) 305-313.

Original languageEnglish
Pages (from-to)305-313
Number of pages9
JournalJournal of The Japanese and International Economies
Issue number3
Publication statusPublished - 2006 Sept


  • Model comparison
  • Taylor rule
  • Zero interest bound

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations


Dive into the research topics of 'Monetary policy at the zero interest bound: A model comparison exercise'. Together they form a unique fingerprint.

Cite this