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Eggertson-woodford recommend monetary policymakers

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What would Eggertson-Woodford recommend monetary policymakers do if the monetary authority believes it is likely to approach the zero lower bound? Should the monetary authority save its "dry powder"? Move rates aggressively lower? Proceed at the normal pace? What can and should it do to conduct policy once it reaches the zero lower bound?

Reference no: EM132405755

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