In this paper we consider inflation and government debt dynamics when monetary policy employs a global interest rate … interest rate rules are known to imply the existence of a second, low inflation steady state, below the target inflation rate … this low inflation steady state and is driven to an even lower inflation floor which, in turn, is supported by a switch to …

transparent and non-transparent regimes are compared to each other and to the corresponding cases of inflation targeting … volatility of inflation, output and interest rate. We analyze the effect of higher inflation targets and large expectational …

either pricelevel or nominal GDP targeting and compare these regimes to inflation targeting. These interest-rate rules are … domain of attraction of the targeted steady state, volatility of inflation and output and sensitivity to the speed of …

either price-level or nominal GDP targeting and compare these regimes to inflation targeting. These interest-rate rules are … domain of attraction of the targeted steady state, volatility of inflation and output and sensitivity to the speed of …

bound on inflation. In contrast, policies geared toward ensuring an output lower bound are insufficient for avoiding …