Schmitt-Grohé, Stephanie; Uribe, Martín - In: Handbook of monetary economics : volume 3, (pp. 653-722). 2010
Observed inflation targets around the industrial world are concentrated at two percent per year. This chapter … investigates the extent to which the observed magnitudes of inflation targets are consistent with the optimal rate of inflation … of inflation ranges from minus the real rate of interest to numbers insignificantly above zero. Furthermore, we argue …