pressures. The possibility to adopt quot;more liberalquot; objectives in the future increases current inflation through an … accommodation effect. Simultaneously, the central bank tries to anchor inflation by promising to be even quot;more conservativequot …; in the future, which may be the relevant case for countries considering the adoption of inflation targeting …

pressures. The possibility to adopt quot;more liberalquot; objectives in the future increases current inflation through an … accommodation effect. Simultaneously, the central bank tries to anchor inflation by promising to be even quot;more conservativequot …; in the future, which may be the relevant case for countries considering the adoption of inflation targeting …

Low inflation hit the Japanese economy shortly after the burst of the bubble in stocks and real estate in 1991 and has … trade dispute. In the early 1990s, Japan faced sluggish economic growth and low inflation, as well as severe structural … difficult to judge the effectiveness and efficiency of the BOJ's policy tools, as achievement of inflation beyond the 2% price …

budget consolidation, interest rate hikes, or lowering the target inflation rate could prevent a crisis. The most effective … and efficient measure is lowering the perceived inflation target by restoring central bank’s independence, thereby … regaining investor confidence. Loans from international partners would also stabilize Turkey’s currency, inflation, and economy …

This paper investigates the macroeconomic risks associated with undesirably low inflation using a medium-sized New … Keynesian model. We consider different causes of persistently low inflation, including a downward shift in long-run inflation … persistently low inflation depend crucially on its underlying cause, as well as on the extent to which monetary policy is …

sector inflation expectations. In contrast, opaque central banks limit their stabilization efforts to avoid disturbing … inflation expectations. As a result, they mute their interest rate response and no longer fully offset anticipated demand shocks …