The unbearable lightness of equilibria in a low interest rate environment
Structural models with no solution are incoherent, and those with multiple solutions are incomplete. We show that models with occasionally binding constraints are not generically coherent. Coherency requires restrictions on the parameters or on the support of the distribution of the shocks. In prese...
| Main Authors: | , |
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| Format: | Working paper |
| Language: | English |
| Published: |
De Nederlandsche Bank
2021
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