1 See e.g. Gertler and Karadi (2012) and the references therein. 2 For example, see Christiano, Eichenbaum and Rebelo (2011) and the references therein. 3 See Brunnermeier, Eisenbach and Sannikov (2012) for a recent survey of this literature.4 Two new papers that take the nonlinearities seriously are Benhabib, Evans and Honkapohja (2012), and Fernández-Villaverde, Gordo, Guerrón-Quintana and Rubio-Ramirez (2012). These papers can be consulted for references to the other literature.
Benhabib J., G.W. Evans and S. Honkapohja (2012), Liquidity Traps and Expectation Dynamics: Fiscal Stimulus or Fiscal austerity?, NBER working paper nr. 18114.Brunnermeier M.K., T.M.Eisenbach and Y.Sannikov (2012), Macroeconomics with Financial Frictions: A Survey, mimeo, March.Christiano L., M. Eichenbaum and S. Rebelo (2011), When Is the Government Spending Multiplier Large?, Journal of Political Economy, vol.119, 78-121.Fernández-Villaverde J., G. Gordon, P.A. Guerrón-Quintana and J. Rubio-Ramirez (2012), Nonlinear Adventures at the Zero Lower Bound, NBER working paper nr. 18058.Gertler M. and P. Karadi (2012), QE 1 vs. 2 vs. 3 … A Framewrok for Analyzing Large Scale Asset Purchases as a Monetary Policy Tool, mimeo, March.Reinhart C.M. and M.B. Sbrancia (2011), The Liquidation of Government Debt, NBER working paper nr. 16893.