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inflation, affecting real interest rates, thus stabilizing debt in an unfavorable manner. …
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We study nominal GDP targeting as optimal monetary policy in a model with a credit market friction following Azariadis, Bullard, Singh and Suda (2018), henceforth ABSS. As in ABSS, the macroeconomy we study has considerable income inequality which gives rise to a large private sector credit...
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Real-time estimates of output gaps and inflation trends differ from the values that are obtained using data available … observations and of already-released observations capable of improving real-time output gap and inflation trend estimates. Our … findings indicate that annual revisions to output and inflation data are in part predictable based on their past vintages …
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