Eggertsson, Gauti B.; Pugsley, Benjamin - Center for Financial Studies - 2007
,
the European Central Bank, the BMW Center for German and European Studies at
Georgetown University and the Center for … Classification: E32, E52, E61
Keywords: Sticky Prices, Central Bank Communication, Stochastic General Equilibrium
Model
1 … approximated model.
The reason why contractionary spirals do not occur at positive interest rates is that the central bank
can …