The macroeconomics of trend inflation

Most macroeconomic models for monetary policy analysis are approximated around a zero inflation steady state, but most central banks target an inflation rate of about 2 percent. Many economists have recently proposed even higher inflation targets to reduce the incidence of the zero lower bound const...

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Bibliographic Details
Main Authors: Ascari, G, Sbordone, A
Format: Journal article
Published: American Economic Association 2014