This site has been archived on 27/01/17

Navigation path

The website of the Directorate General for Economic and Financial Affairs has moved.

You will find all publications issued after July 2015 on the new web presence.

Structural reforms at the zero bound

Author(s): Lukas Vogel

Structural reforms at the zero boundpdf(486 kB) Choose translations of the previous link 

Summary for non-specialistspdf(32 kB) Choose translations of the previous link 

This paper uses the European Commission’s QUEST macroeconomic model to analyse the impact of structural reforms on economic activity in an environment in which the zero bound on monetary policy rates is temporarily binding. The simulations suggest that although such reforms can have a negative impact on economic activity in the short run, these effects tend to be small and short-lived when a variety of transmission channels are considered. The results also do not support the idea that postponing structural reforms improves economic conditions, in such and environment.

(European Economy. Economic Papers 537. November 2014. Brussels. PDF. 40pp. Tab. Graph. Ann. Bibliogr. Free.)

KC-AI-14-537-EN-N (online)KC-AI-14-537-EN-C (print)
ISBN 978-92-79-35186-0 (online)ISBN 978-92-79-36152-4 (print)
doi: 10.2765/71781 (online)doi: 10.2765/81364 (print)

JEL classification: E20, E30, E60, F40

Economic Papers are written by the staff of the Directorate-General for Economic and Financial Affairs, or by experts working in association with them. The Papers are intended to increase awareness of the technical work being done by staff and to seek comments and suggestions for further analysis. The views expressed are the author’s alone and do not necessarily correspond to those of the European Commission.

Additional tools

  • Print version 
  • Decrease text 
  • Increase text