Time Consistency and Duration of Government Debt: A Model of Quantitative Easing

S-Tier
Journal: Review of Economic Studies
Year: 2023
Volume: 90
Issue: 4
Pages: 1759-1799

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article presents a model of quantitative easing (QE) at the zero lower bound (ZLB) on the short-term nominal interest rate. QE, which reduces the maturity of government debt, is effective at the ZLB because it generates expectations of future monetary expansion in a time-consistent equilibrium. Numerical experiments show that this effect can be substantial.

Technical Details

RePEc Handle
repec:oup:restud:v:90:y:2023:i:4:p:1759-1799.
Journal Field
General
Author Count
3
Added to Database
2026-01-24