Sebastian Schmidt - personal webpage


    Contact Information:                        
    European Central Bank
    Monetary Policy Research Division
    60640 Frankfurt

    Email: or 

I am an Economist in the Monetary Policy Research Division of the European Central Bank. The views expressed on this website are my own and do not necessarily reflect those of the European Central Bank or the Eurosystem.

Working Papers:

"Gradualism and Liquidity Traps," with Taisuke Nakata, July 2017, R&R at Review of Economic Dynamics [Older ECB WP version]

"Conservatism and Liquidity Traps," with Taisuke Nakata, resubmitted to Journal of Monetary Economics [Older versions: 2014 FEDS WP, 2015 ECB WP]

"The Risky Steady State and the Interest Rate Lower Bound," with Timothy Hills and Taisuke Nakata [press coverage: Bloomberg News, Financial Times, Reuters; recent summary in ECB Research Bulletin]

"Attenuating the Forward Guidance Puzzle: Implications for Optimal Monetary Policy," work in progress (August 2017), with Taisuke Nakata and Paul Yoo


"Fiscal Activism and the Zero Nominal Interest Rate Bound," Journal of Money, Credit and Banking, 49(4), 695-732, June 2017. [WP versionOnline Appendix, Slides]

"Lack of confidence, the zero lower bound, and the virtue of fiscal rules," Journal of Economic Dynamics and Control, 70, 36-53, September 2016.

"Dealing with a Liquidity Trap when Government Debt Matters: Optimal Time-Consistent Monetary and Fiscal Policy," with Matthias Burgert, Journal of Economic Dynamics and Control, 47, 282-299, October 2014.
"Optimal Monetary and Fiscal Policy with a Zero Bound on Nominal Interest Rates," Journal of Money, Credit and Banking, 45(7), 1335-1350, October 2013. [Online Appendix]

"The New Keynesian Approach to Dynamic General Equilibrium Modeling: Models, Methods, and Macroeconomic Policy Evaluation," with Volker Wieland, in: P.B. Dixon and D.W. Jorgenson (eds.), Handbook of Computable General Equilibrium Modeling, Vol. 1, Elsevier, North-Holland, 2013.
"A New Comparative Approach to Macroeconomic Modeling and Policy Analysis," with Volker Wieland, Tobias Cwik, Gernot Mueller and Maik Wolters, Journal of Economic Behavior and Organization83(3), 523-541, August 2012.
"The Cost Channel, Indeterminacy, and Price-Level versus Inflation Stabilization," The B.E. Journal of MacroeconomicsVol. 11 (Topics), Article 3, January 2011.

Other publications:

"Business cycle stabilisation in the Eurozone: Ways forward," with Corsetti, L. Dedola, M. Jarociński and B. Maćkowiak, voxeu column, October 2017

"Macroeconomic stabilization, monetary-fiscal interactions, and Europe's monetary union," with G. Corsetti, L. Dedola, M. Jarociński and B. Maćkowiak, Discussion Paper, December 2016

"DSGE models and counterfactual analysis," with G. Coenen, R. Motto, M. Rostagno, and F. Smets, in: R. S. Gürkaynak and C. Tille (eds.), DSGE Models in the Conduct of Policy: Use as intended, Book, CEPR Press, April 2017.

"Comparing fiscal multipliers across models and countries in Europe," with J. Kilponen, M. Pisani, V. Corbo, T. Hledik, J. Hollmayr, S. Hurtado, P. Júlio, D. Kulikov, M. Lemoine, M. Lozej, H. Lundvall, J. Maria, B. Micallef, D. Papageorgiou, J. Rysanek, D. Sideris, C. Thomas and G. De Walque, ECB Working Paper No. 1760, March 2015 

"Dealing with a Liquidity Trap when Government Debt Matters," ECB Research Bulletin No. 21, Spring 2014

Selected discussions:

"The Dire Effects of the Lack of Monetary and Fiscal Coordination," by F. Bianchi and L. Melosi, ECB conference on Public debt, fiscal policy and EMU deepening, November 2017. [Discussion slides]

"Endogenous volatility at the zero lower bound: Implications for stabilization policy," by S. Basu and B. Bundick, 9th International Research Forum on Monetary Policy, March 2016. [Discussion slides

"Liquidity Traps and Expectation Dynamics: Fiscal Stimulus or Fiscal Austerity?" by J. Benhabib, G. Evans and S. Honkapohja, SNB Research Conference 2013, September 2013. [Discussion slides]