Expectations, Deflation Traps and Macroeconomic Policy
نویسندگان
چکیده
منابع مشابه
Expectations, deflation traps and macroeconomic policy
We examine global economic dynamics under infinite-horizon learning in a New Keynesian model in which the interest-rate rule is subject to the zero lower bound. As in Evans, Guse and Honkapohja (2008), we find that under normal monetary and fiscal policy the intended steady state is locally but not globally stable. Unstable deflationary paths can arise after large pessimistic shocks to expectat...
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I am grateful to Jacques Dreze for helpful comments on an earlier draft.
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2009
ISSN: 1556-5068
DOI: 10.2139/ssrn.1513232