Kumhof, Michael; Nunes, Ricardo; Yakadina, Irina - Federal Reserve Board (Board of Governors of the … - 2008
This paper asks whether an aggressive monetary policy response to inflation is feasible in countries that suffer from …. But following such rules results in extremely volatile inflation. This leads to very frequent violations of the zero lower … to inflation is highly negative, and more aggressive inflation fighting is inferior from a welfare point of view. The …