What Else Can Central Banks Do?
Executive Summary
1 Introduction and summary
2 The dangers of the lower bound
2.1 A look at recent history
2.2 When will the constraint bind? A simple exercise
2.3 Dynamic simulations
3 How to ease monetary policy when rates hit zero
3.1 Negative interest rates
3.2 Quantitative easing
3.3 Helicopter money
3.4 Forward guidance
3.5 Beyond forward guidance: Committing to higher future inflation
3.6 Policy mix, interactions and financial stability
4 Raising the inflation target
4.1 Benefits of raising the inflation target
4.2 Costs of a higher inflation target
4.3 Credibility and the inflation target
4.4 How to implement a new target
4.5 What about a price level target?
5 Monetary policy in a post-cash economy
5.1 Markets are driving payments systems away from cash
5.2 Monetary policy without cash
5.3 Other policy aspects of post-cash economies
