aiming for two per cent inflation over the medium term”, with “symmetric commitment” to this target. “Symmetry means that the … therefore analyse this policy strategy through a model of inflation target zone, with a central value and symmetric upper and … lower bounds on inflation, within which the central bank may decide not to intervene, provided inflation is expected to …

is persistent demand shortage. We show that, under some conditions, a secular stagnation steady state exists in which the … addition to the job creation channel of the standard matching model. Turning to the stagnation equilibrium, the effects of … employment gap under stagnation are primarily driven by fluctuations in underemployment instead of structural unemployment. Our …

We develop an asset-pricing model with endogenous corporate policies that explains how inflation jointly impacts real … when inflation falls. An increase in inflation has opposite effects, but with smaller magnitudes. In the cross section, the … model predicts the negative impact of inflation on real equity values is stronger for low leverage firms. We find empirical …