منابع مشابه
Dispersed Inflation Expectations and the Zero Lower Bound∗
Survey data on expectations shows that households have heterogeneous inflation expectations and their inflation expectations respond sluggishly to realized shocks to future inflation. By contrast, in models with a zero bound on the nominal interest rate currently used for monetary and fiscal policy analysis, households’ inflation expectations are not heterogeneous and not sticky. This paper sol...
متن کاملEmpirical Properties of Inflation Expectations and the Zero Lower Bound∗
Survey data on expectations shows that households have heterogeneous inflation expectations and households’ inflation expectations respond sluggishly to realized shocks to future inflation. By contrast, in models with a zero lower bound currently used for monetary and fiscal policy analysis, households’ inflation expectations are neither heterogeneous nor sticky. This paper therefore solves a N...
متن کاملHeeding Daedalus: Optimal Inflation and the Zero Lower Bound
This paper reexamines the implications of the zero lower bound on interest rates for monetary policy and the optimal choice of steady-state inflation in light of the experience of the recent global recession. There are two main findings. First, the zero lower bound did not materially contribute to the sharp declines in output in the United States and many other economies through the end of 2008...
متن کاملThe Zero Lower Bound
In the standard New Keynesian model, monetary policy is often described by an interest rate rule (e.g. a Taylor rule) that moves the interest rate in response to deviations of inflation and some measure of economic activity from target. Nominal interest rates are bound from below by 0 – since money is storable, one would never accept a negative nominal return. How does the behavior of the NK mo...
متن کاملThe Zero Lower Bound and the Dual Mandate
This article uses a DSGE framework to evaluate the role of monetary policy in determining the likelihood of encountering the zero lower bound. We find that the probability of experiencing episodes of being at zero lower bound depends almost exclusively on the monetary policy rule. A policy rule, such as the one proposed by Taylor (1993) which is based on the dual mandate is highly likely to lea...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2014
ISSN: 1556-5068
DOI: 10.2139/ssrn.2584492