Journal Article
Fed’s Effective Lower Bound Constraint on Monetary Policy Created Uncertainty
Abstract: Uncertainty about the economy increased when the Fed reduced the federal funds rate to its effective lower bound because the constraint restricted the Fed?s ability to stabilize the economy. As a result, a much stronger negative relationship between uncertainty and economic activity emerged during and shortly after the Great Recession.
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Bibliographic Information
Provider: Federal Reserve Bank of Dallas
Part of Series: Economic Letter
Publication Date: 2017-11
Volume: 12
Issue: 11
Pages: 1-4