Ascari, Guido; Sbordone, Argia M. - 2013
Most macroeconomic models for monetary policy analysis are approximated around a zeroinflation steady state, but most … targets to reduce the incidence of the zero lower bound (ZLB) constraint on monetary policy. In this survey, we show the … importance of appropriately accounting for a low, positive trend inflation rate for the conduct of monetary policy. We first …