Optimal monetary policy and imperfect financial markets: A case for negative nominal interest rates?
Texas Tech University; University of Georgia
New Keynesian model with money-in-utility, borrowing constraints on households tied to labor income, and monopolistically competitive intermediate-good firms with Rotemberg price adjustment costs. Extension includes monopolistic competition in 
intermediate-good firms: monopolistic competition with Rotemberg pricing, owned by risk-neutral entrepreneurs; final-good firms: perfect competition with CES aggregation
Table 6 p.226
Imperfect banking sector - benchmark with market power in both loan and deposit markets