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/RDS013MaRDI QIDQ4610554zbMATH OpenOpenAlexWikidataFDO

Authors Olivier Coibion, Yuriy Gorodnichenko, Johannes F. Wieland

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

zbMATH Keywords

optimal inflationNew Keynesianzero boundprice-level targeting

Mathematics Subject Classification ID

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

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• Monetary transmission in money markets: the not-so-elusive missing piece of the puzzle
• The signaling effect of raising inflation
• Optimal discretionary monetary policy in a micro-founded model with a zero lower bound on nominal interest rate
• On time-dependent nominal contracting models with positive trend inflation
• Optimal inflation rates with the trending relative price of investment
• 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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