It was presented in a more formal way in G. Eggertsson and M. Woodford, “The Zero Bound on Interest Rates and Optimal Monetary Policy”, Brookings Papers on Economic Activity, 1, 2003, pp.
139–233 and, more recently, in M. Woodford, “Methods of Policy Accommodation at the Interest-Rate Lower Bound”, paper presented at the Jackson Hole Economic Policy Symposium of the Federal Reserve Bank of Kansas City, “The Changing Policy Landscape”, August 31 – September 1, 2012. 7  The commitment mechanism is necessary due to the time-inconsistency problem inherent in such a situation, i.e.