Taisuke Nakata, a researcher at the US Federal Reserve's division of research and statistics, has published a paper examining the combined effects of monetary policy constrained by the zero lower bound, and the presence of uncertainty in an economy.

Nakata argues that although the zero lower bound and uncertainty are perhaps the two biggest factors in the US's ‘Great Recession', they have until now largely been examined in isolation.

Nakata uses the exogenous variation in the household's