commiting to keep interest rates low at the exit of the liquidity trap, to stabilize inflation today. 2. From debt … consolidated budget) monetary policy becomes subservient to fiscal policy, giving rise to more volatile inflation, output and … interest rates. Liquidity trap (LT) episodes are longer, however, the impact of interest rate policy commitments on inflation …

commiting to keep interest rates low at the exit of the liquidity trap, to stabilize inflation today. 2. From debt … consolidated budget) monetary policy becomes subservient to fiscal policy, giving rise to more volatile inflation, output and … interest rates. Liquidity trap (LT) episodes are longer, however, the impact of interest rate policy commitments on inflation …

This paper presents a welfare analysis of a desirable Inflation Targeting Policy in order to achieve price … the components of a Inflation Targeting Policy, such as inflation targeting (IT), price level targeting (PLT), and hybrid … targeting (HT), as well as the modified inflation targeting (MIT), which aims at an optimal price level under an inflation …

commiting to keep interest rates low at the exit of the liquidity trap, to stabilize inflation today. 2. From debt … consolidated budget) monetary policy becomes subservient to fiscal policy, giving rise to more volatile inflation, output and … interest rates. Liquidity trap (LT) episodes are longer, however, the impact of interest rate policy commitments on inflation …

long run Phillips curve recorded -0.75 in Sweden and -0.23 in the United States. While the average inflation rate in the … United States was very close to its targeted level, the average inflation rate in Sweden was 0.6 per- centage points below … its targeted level over the sample period. The deviation of inflation rate from its targeted level in Sweden resulted in …

stable rates inflation in many countries in the nineties. Consequently, the main goal of this paper is to offer an overview … of the main policy issues arising in a low inflation environment and their practical relevance so as to identify the main …

stable rates inflation in many countries in the nineties. Consequently, the main goal of this paper is to offer an overview … of the main policy issues arising in a low inflation environment and their practical relevance so as to identify the main …

nominal interest rates for a length of time that increases in proportion to how much past inflation has deviated - either … key principle is to respond strongly enough to deviations of past inflation from optimal levels by sufficiently increasing …

foster renewed economic growth and prosperity. Paul Krugman (1998a, b) and Ben Bernanke (2000; 2002) identify low inflation … sustained monetary easing as the key to reigniting inflation, creating an exit from a liquidity trap through low interest rates …

rely on the Neo-Fisherian mechanism of inducing an increase in inflation by first increasing interest rates. …