Raising the Inflation Target: Lessons from Japan
In: FEDS Notes No. 2020-01-08-1 https://doi.org/10.17016/2380-7172.2493
35 Ergebnisse
Sortierung:
In: FEDS Notes No. 2020-01-08-1 https://doi.org/10.17016/2380-7172.2493
SSRN
Working paper
In: FEDS Notes No. 2020-01-08-1
SSRN
In: Journal of economic dynamics & control, Band 73, S. 220-240
ISSN: 0165-1889
In: FEDS Notes No. 2015-08-27 https://doi.org/10.17016/2380-7172.1577
SSRN
Working paper
In: FEDS Working Paper No. 2013-12
SSRN
Working paper
SSRN
Working paper
In: Finance and Economics Discussion Series (FEDS)
SSRN
In: CEPR Discussion Paper No. DP15422
SSRN
Working paper
In: Journal of Monetary Economics, Band 104, S. 37-47
We study optimal monetary and fiscal policy in a New Keynesian model where occasional declines in agents' confidence can give rise to persistent liquidity trap episodes. Unlike in the case of fundamental-driven liquidity traps, there is no straightforward recipe for mitigating the welfare costs and the systematic in ation shortfall associated with expectations-driven liquidity traps. Raising the in ation target or appointing an in ation-conservative central banker improves in ation outcomes away from the lower bound but exacerbates the shortfall at the lower bound. Using government spending as an additional policy tool worsens stabilization outcomes both at and away from the lower bound. However, appointing a policymaker who is sufficiently less concerned with government spending stabilization than society can eliminate expectations-driven liquidity traps altogether.
BASE
In: ECB Working Paper No. 2304
SSRN
Working paper
SSRN
Working paper
SSRN
Working paper
In: FEDS Working Paper No. 2016-085
SSRN
Working paper
SSRN
Working paper