Bianchi, Francesco; Melosi, Leonardo; Rottner, Matthias - 2021
Since the 2001 recession, average core inflation has been below the Federal Reserve’s 2% target. This deflationary bias …-target inflation corrects the bias, improves welfare, and reduces the risk of deflationary spirals - a pathological situation in which … of asymmetry would have removed the deflationary bias observed in the United States. …