This paper quantitatively evaluates a steady-state inflation rate that is considered optimal from the perspective of social welfare, using a model describing the Japanese economy. Specifically, we build a DSGE model capable of evaluating the effects, on social welfare, of points concerning the...

We analyze the monetary policy rules which could be implemented in practice under the zero interest rate constraint. Based on the estimated small structural model for Japanese economy, we investigate which policy rule is superior using stochastic simulations. We modify the estimated Taylor-type...