"THE CASE FOR UNENCUMBERING INTEREST RATE POLICY AT THE ZERO BOUND
Marvin Goodfriend1
Carnegie Mellon University
and
National Bureau of Economic Research
Designing Resilient Monetary Policy Frameworks for the Future Jackson Hole Economic Policy Symposium
Federal Reserve Bank of Kansas City
Jackson Hole, Wyoming
August 26-27, 2016"
Excerpt, p. 25:
"The balance of this section outlines three methods that would completely unencumber interest rate policy at the zero bound. The three methods in turn would: i) abolish paper currency; ii) introduce a market-determined flexible deposit price of paper currency; and iii) provide electronic currency (to pay or charge interest) at par with deposits, with or without the provision of paper currency as in (ii) above. Each method is assessed for its effectiveness, technological requirements, institutional modifications, potential for expedited implementation, and acceptability with the public at large."
Edited by jmicou, 27 August 2016 - 02:33 PM.
