rule and targets a zero inflation rate, there is a significant increase in the variability of output but not inflation …

-looking fashion to inflation expectations can avoid the problem of indeterminacy …

inflation and interest rates. We study a stylized New Keynesian model where the policy instrument is subject to a lower bound to … time, whereas in the "liquidity trap equilibrium", policy is mostly or always constrained. We use options data on future … interest rates and inflation to study whether the decrease in the natural rate of interest leads to forecast densities …

This paper analyzes the effects of the lower bound for interest rates on the distributions of inflation and interest … in the “liquidity trap equilibrium,” policy is mostly or always constrained. We use options data on future interest rates … and inflation to study whether the decrease in the natural real rate of interest leads to forecast densities consistent …