The optimal inflation rate in New Keynesian models: should central banks raise their inflation targets in light of the zero lower bound?

DOI10.1093/RESTUD/RDS013zbMATH Open1405.91432OpenAlexW2154801578WikidataQ107460676 ScholiaQ107460676MaRDI QIDQ4610554FDOQ4610554

Yuriy Gorodnichenko, Johannes F. Wieland, Olivier Coibion

Publication date: 23 January 2019

Published in: Review of Economic Studies (Search for Journal in Brave)

Full work available at URL: https://economicdynamics.org/meetpapers/2012/paper_70.pdf

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zbMATH Keywords

optimal inflationNew Keynesianzero boundprice-level targeting

Mathematics Subject Classification ID

Macroeconomic theory (monetary models, models of taxation) (91B64)

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• Quantitative easing and the loan to collateral value ratio
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• The New Keynesian monetary model: does it show the comovement between GDP and inflation in the U.S.?
• The signaling effect of raising inflation
• Optimal discretionary monetary policy in a micro-founded model with a zero lower bound on nominal interest rate
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• Monetary policy with a state-dependent inflation target in a behavioral two-country monetary union model
• Should the ECB adjust its strategy in the face of a lower \(r^\star\)?
• Revisiting the optimal inflation rate with downward nominal wage rigidity: the role of heterogeneity
• Heterogeneity and monetary policy
• Does it matter (for equilibrium determinacy) what price index the central bank targets?

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