Working Paper
Monetary Policy and Real Borrowing Costs at the Zero Lower Bound
López-Salido, J. David; Gilchrist, Simon; Zakrajšek, Egon (2014-05-07)
This paper compares the effects of conventional monetary policy on real borrowing costs with those of the unconventional measures employed after the target federal funds rate hit the zero lower bound (ZLB). For the ZLB period, we identify two policy surprises: changes in the 2-year Treasury yield around policy announcements and changes in the 10-year Treasury yield that are orthogonal to those in the 2-year yield. The efficacy of unconventional policy in lowering real borrowing costs is comparable to that of conventional policy, in that it implies a complete pass-through of policy-induced ...
Finance and Economics Discussion Series , Paper 2014-39

Working Paper
Monetary Policy and Real Borrowing Costs at the Zero Lower Bound
López-Salido, J. David; Gilchrist, Simon; Zakrajšek, Egon (2014-01)
This paper compares the effects of conventional monetary policy on real borrowing costs with those of the unconventional measures employed after the target federal funds rate hit the zero lower bound (ZLB). For the ZLB period, we identify two policy surprises: changes in the 2-year Treasury yield around policy announcements and changes in the 10-year Treasury yield that are orthogonal to those in the 2-year yield. The efficacy of unconventional policy in lowering real borrowing costs is comparable to that of conventional policy, in that it implies a complete pass-through of policy-induced ...
Finance and Economics Discussion Series , Paper 2014-03