shock of 2008–9 led to a severe recession in the United States and Europe. Monetary policy could be greatly improved with a …

The recent financial crisis exposed serious flaws with inflation-targeting monetary policy regimes. Because of … inflation fears, the Fed did not provide enough monetary stimulus in late 2008, allowing the largest decline in nominal spending … since the 1930s. This demand shock intensified the financial crisis and led to high unemployment. Nominal GDP targeting …

bank to effectively stabilize domestic output and inflation in the presence of policy changes abroad and potentially …

potential output growth and the attendant and partly temporary slowdown in inflation. Assessing the NE is however a complicated … long-run perspective, the central bank could capitalise on the NE to set lower inflation targets. In the short to medium …