Search Results - subject:"steady state real interest rate"

The inflation target and the equilibrium real rate

Cotton, Christopher D. - 2020

Many economists have proposed raising the inflation target to reduce the probability of hitting the zero lower bound (ZLB). It is both a common assumption and a feature of standard models that raising the inflation target does not impact the equilibrium real rate. I demonstrate that in the New...

Persistent link: https://www.econbiz.de/10012388958

The inflation target and the equilibrium real rate

Cotton, Christopher D. - 2020 - This version: February 2020

Persistent link: https://www.econbiz.de/10012215760

The optimal inflation target and the natural rate of interest

Andrade, Philippe; Galí, Jordi; Le Bihan, Hervé; … - 2019

We study how changes in the steady-state real interest rate affect the optimal inflation target in a New Keynesian DSGE … before the financial crisis. The relation between the steady-state real interest rate and the optimal inflation target is … required increase in the optimal inflation target under a lower steady-state real interest rate is, however, much smaller. …

Persistent link: https://www.econbiz.de/10012388954

The optimal inflation target and the natural rate of interest

Andrade, Philippe; Galí, Jordi; Le Bihan, Hervé; … - 2019 - This version: October 2019

Persistent link: https://www.econbiz.de/10012136959