Adam, Klaus (contributor); Billi, Roberto M. (contributor) - 2005
. Gordon, “A Positive Theory of Monetary
Policy in a Natural Rate Model,” Journal of Political Economy, 1983, 91,
589 …, suggests that low
values for the natural rate of interest lead to sizeable output losses and deflation under
discretionary …-looking model, we show that under discretionary
monetary policy a fall in the natural real rate of interest generates large output …