move the economy from a regime in which inflation is close to the central bank's target to a regime in which the central … bank misses its target, inflation rates are negative, and interest rates are close to zero with high probability. A …

This paper draws from Japan's recent monetary experiment to examine the effects of an increase in the inflation target … identified inflation target shock. We apply these findings to calibrate the effect of a shock to the inflation target in a new …-Keynesian DSGE model of the Japanese economy. We argue that imperfect observability of the inflation target and a separate exchange …