TY  - JOUR
AU  - Gilchrist, Simon
AU  - López-Salido, David
AU  - Zakrajšek, Egon
TI  - Monetary Policy and Real Borrowing Costs at the Zero Lower Bound
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 20094
PY  - 2014
Y2  - May 2014
DO  - 10.3386/w20094
UR  - http://www.nber.org/papers/w20094
L1  - http://www.nber.org/papers/w20094.pdf
N1  - Author contact info:
Simon Gilchrist
Department of Economics
New York University
19 West 4th Street.
New York, NY, 10003
Tel: 212 992 9770
Fax: NA
E-Mail: sg40@nyu.edu

David López-Salido
Division of Monetary Affairs
Federal Reserve Board
20th and C Streets, N.W.
Washington, DC 20551
Tel: 202 452 2566
E-Mail: david.j.lopez-salido@frb.gov

Egon Zakrajšek
Division of Monetary Affairs
Federal Reserve Board
20th Street & Constitution Avenue, NW
Washington, D.C. 20551
Tel: 202/728-5864
Fax: 202/452-2846
E-Mail: egon.zakrajsek@frb.gov
M1  - published as Simon Gilchrist, David López-Salido, Egon Zakrajšek. "Monetary Policy and Real Borrowing Costs at the Zero Lower Bound," in Mark Gertler, organizer, "Lessons from the Financial Crisis for Monetary Policy" American Economic Journal: Macroeconomics, Volume 7, no. 1 (2015)

AB  - 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 movements in Treasury yields to comparable-maturity private yields.
ER  -