Are positive technology shocks expansionary at the zero lower bound?

Key Points

• Positive technology shocks enhance economic expansion at the zero lower bound, influencing monetary policy strategies.
• The research identifies key mechanisms through which technology impacts aggregate demand under constrained interest rates.
• Observational analysis focused on economic indicators and technology trends to assess their relationship with expansion.
• The findings highlight the role of innovation in stimulating growth, suggesting that policy may benefit from leveraging technological advancements.