economic activity, inflation and government debt in face of an occasionally binding lower bound on the nominal interest rate in … policy, the optimal fiscal policy rule features a strong counter-cyclical response to the deviation of inflation from the … inflation significantly improves welfare and reduces the lower-bound frequency. In addition, the optimal simple monetary and …

stabilization improves the inflation-output tradeoff for a discretionary central bank. However, in the aftermath of a deep recession … declines in inflation and output when the lower bound is binding. …

complementarities in price setting delivers a strictly positive optimal inflation in steady state, differently from standard New … inflation curbs the markups, especially those of the more productive firms, hence attenuating the inefficient dispersion of … markups. At low levels of inflation, the gains from the reduction in misallocation outweigh the cost of inflation …

on output and, in particular, also on inflation in the euro area under alternative settings for monetary policy. We … that this over-proportionality is stronger for the fiscal multiplier on inflation than on output. We relate this finding to …

, premium components are less reactive to a typical 10 bp increase in inflation, while real rate responses change their sign …

policy is not constrained by the ZLB. The neutral rate - the level of the policy rate consistent with stable inflation and …