Regras de política monetária em um ambiente recessivo

Abstract

This paper considers challenges and consequences to monetary policy when nominal interest rates hit the zero lower bound. In this context, conventional monetary policy, conducted through open market operations, is not very effective. It also introduces the possible causes that push an economy into a situation characterized by low interest rates and inflation, as well as measures which are shown to be capable of stabilizing economic activity. The abandonment of the gold standard, announced by Franklin Delano Roosevelt in 1933, illustrates the debate about how monetary policy can shape expectations under a deep recession. The author argues that targeting nominal gross domestic product (NGDP) along a growth path, i.e., a NGDP level target, can stabilize an economy stuck in a deflationary trap.