Bernanke suggested methods for monetary policy to deal with the lower bound,including all of the following except:

Question

Quizplus · Accepted Answer

Bernanke did suggest affecting interest rate expectations, altering the composition of assets held by the central bank, and expanding the size of the central bank balance sheet as methods for dealing with the lower bound. However, he did not suggest tightening monetary policy more aggressively, as this would likely exacerbate the situation by reducing inflation expectations even further.

Bernanke Suggested Methods for Monetary Policy to Deal with the Lower