Positive trend inflation and determinacy in a medium-sized New Keynesian model
This paper studies the challenge that increasing the inflation target poses to equilibrium determinacy in a mediumsized New Keynesian model without indexation fitted to the Great Moderation era. For moderate targets of the inflation rate, such as 2 or 4 percent, the probability of determinacy is nea...
| Main Authors: | , , , |
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| Format: | Journal article |
| Language: | English |
| Published: |
Association of the International Journal of Central Banking
2020
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