We study the impact of market incompleteness and bounded rationality on the effectiveness of make-up strategies. To do …-binding effective lower bound (ELB) on the policy rate. Our simulations show that make-up strategies can mitigate the negative … the effectiveness of make-up strategies. However, the stabilisation benefits of make-up strategies are small when agents …

We study the impact of market incompleteness and bounded rationality on the effectiveness of make-up strategies. To do …-binding effective lower bound (ELB) on the policy rate. Our simulations show that make-up strategies can mitigate the negative … the effectiveness of make-up strategies. However, the stabilisation benefits of make-up strategies are small when agents …

growth strengthens the gains from make-up strategies relative to inflation targeting, especially if policy space is reduced … generate permanent scars on long-run aggregate supply. Make-up strategies not only foster the alignment of inflation with …

strengthens the gains from make-up strategies relative to inflation targeting, especially if policy space is reduced. This result … permanent scars on long-run aggregate supply. Make-up strategies not only foster the alignment of inflation with target but also …

strengthens the gains from make-up strategies relative to inflation targeting, especially if policy space is reduced. This result … permanent scars on long-run aggregate supply. Make-up strategies not only foster the alignment of inflation with target but also …

strengthens the gains from make-up strategies relative to inflation targeting, especially if policy space is reduced. This result … permanent scars on long-run aggregate supply. Make-up strategies not only foster the alignment of inflation with target but also …

and large-scale asset purchases. When considering alternatives to in ation targeting, we find that make-up strategies such …