Endogenous Volatility at the Zero Lower Bound: Implications for Stabilization Policy
---- Acknowledgments ----
We thank Taisuke Nakata, Alexander Richter, Andrew Lee Smith, and Stephen Terry for helpful discussions, and Martin Eichenbaum and several anonymous referees for insightful comments. We also appreciate the feedback from participants at various conferences and seminars. We thank Daniel Molling for excellent research assistance and Research Automation for computational support. The views expressed herein are solely those of the authors and do not necessarily reflect the views of the Federal Reserve Bank of Kansas City, the Federal Reserve System, or the National Bureau of Economic Research.