Reifschneider, David Leon; Roberts, John M. - 2005
model this
more-aggressive policy as larger coefficients on inflation and output in a Taylor rule.
• A central bank may … promise to make up any shortfall in short-term nominal interest
rates relative to the Taylor rule that occurs during a zero … would be under the Taylor rule, and, in particular, will stay at zero
for a more extended period.
• Krugman (1998) has …