Using the Reserve Bank of Australia's MARTIN model we compare actual monetary policy decisions to a counterfactual in … high during 2016-2019, keeping inflation below the Reserve Bank's target band. Optimal monetary policy in 2016-2019 would …

The paper analyses the reasons for Japan's persistently low inflation since the bursting of the Japanese bubble economy … (low inflation conundrum). It is shown that Japan experienced a structural break from a high-growth period with relatively … high inflation to a low-growth period with exceptionally low inflation since the early 1990s. We show based on a stylized …

inflation bias as monetary policy tries to exploit nominal wage contracts to address labour-market distortions Although an … inflation target eliminates this inflation bias, it creates a conflict between monetary policy and discretionary fiscal policy …

In this paper fiscal policy is examined for an open economy characterised by unemployment due to efficiency wages. We …

recessions. First, we show that the consumption risk of short-time work is considerably smaller compared to unemployment using … frictions featuring an endogenous firing and short-time work decision. In recessions, short-time work reduces the unemployment …

in their unemployment rate and not a decline in labour force participation rate. Policymakers should take account of …

and inflation. …

inflation targeter early in this period but began to pay less attention to inflation after 2009. Loss of the strong nominal …