Reifschneider, David Leon; Roberts, John M. - 2005
dealing with the zero
bound rely on influencing expectations, both of future interest rates and of future
inflation. While … model this
more-aggressive policy as larger coefficients on inflation and output in a Taylor rule.
• A central bank may … proposed raising the central bank’s inflation target permanently
(or at least for a very long period) as a way of escaping a …