Coibion, Olivier; Gorodnichenko, Yuriy - In: American Economic Review 101 (2011) 1, pp. 341-70
theoretical results on determinacy in New Keynesian models with positive trend inflation and new empirical findings on the Federal … to macroeconomic variables and the decline in trend inflation. (JEL E12, E23, E31, E32, E52) …With positive trend inflation, the Taylor principle does not guarantee a determinate equilibrium. We provide new …