Discovery Projects - Grant ID: DP140102941

Funding Activity

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Funded Activity Summary

Optimal policy in the global liquidity trap. The recent global financial crisis has led most central banks in developed economies to reduce their policy interest rates to unprecedentedly low levels. As a result, the liquidity trap has now become a serious concern internationally. This project will derive the optimal monetary and fiscal policy in the global liquidity trap. It will also show how a shock in one country affects other countries and propose tools for improving the empirical fit of the models in a liquidity trap. This project will become the foundation for the discussion of policy options in the global liquidity trap.

Funded Activity Details

Start Date: 01-01-2014

End Date: 01-04-2014

Funding Scheme: Discovery Projects

Funding Amount: $267,350.00

Funder: Australian Research Council