Research Discussion Paper – RDP 2005-04 Monetary Policy, Asset-Price Bubbles and the Zero Lower Bound

Contents

• Introduction
• Methodology
• How Might the Zero Lower Bound Influence an Activist Policy-maker?
• Results
• Conclusions
• Appendix A: Recent Literature
• Appendix B: The Phase Diagram for the Ball-Svensson Model Under Optimal Policy
• Appendix C: Modelling Issues
• References

We are grateful to Louise Wilkinson for coding assistance, and to colleagues at the Reserve Bank, as well as Piti Disyatat, Kenneth Kuttner, Andrew Rose, Takatoshi Ito and other participants at the 15^th Annual East Asian Seminar on Economics, for helpful comments. The views expressed in this paper are those of the authors and should not be attributed to the Reserve Bank of Australia.