Bernanke's No-arbitrage Argument Revisited: Can Open Market Operations in Real Assets Eliminate the Liquidity Trap?
---- Acknowledgments ----
This paper was prepared for the 19th Annual Conference of the Central Bank of Chile 2015 "Monetary Policy through Asset Markets: Lessons from Unconventional Measures and Implications for an Integrated World." We thank Luca Dedola, Paul Krugman and Michael Woodford for comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.