dc.contributor.author | Alstadheim, Ragna | |
dc.contributor.author | Henderson, Dale | |
dc.date.accessioned | 2018-05-16T10:35:05Z | |
dc.date.available | 2018-05-16T10:35:05Z | |
dc.date.issued | 2006 | |
dc.identifier.isbn | 82-7553-348-1 | |
dc.identifier.isbn | 82-7553-350-3 | |
dc.identifier.issn | 0801-2504 | |
dc.identifier.issn | 1502-8143 | |
dc.identifier.uri | http://hdl.handle.net/11250/2498373 | |
dc.description.abstract | We consider standard monetary-policy rules with inflation-rate targets and interest-rate or money-growth instruments using a flexible-price, perfect foresight model. There is always a locally-unique target equilibrium. There are also below-target equilibria (BTE) with inflation always below target and constant or asymptotically approaching or eventually reaching a below-target value. Liquidity traps are neither necessary nor sufficient for BTE which can arise if monetary policy keeps the interest rate above a lower bound. We construct monetary-policy rules, that preclude BTE, some of which are monotonic in inflation but all of which are non-differentiable at a point. For standard monetary-policy rules
there are plausible fiscal policies that insure uniqueness by precluding BTE; those policies exclude perpetual surpluses and, possibly, perpetual balanced budgets. | nb_NO |
dc.language.iso | eng | nb_NO |
dc.publisher | Norges Bank | nb_NO |
dc.relation.ispartofseries | Working Papers;3/2006 | |
dc.rights | Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/4.0/deed.no | * |
dc.subject | JEL: E31 | nb_NO |
dc.subject | JEL: E41 | nb_NO |
dc.subject | JEL: E52 | nb_NO |
dc.subject | JEL: E62 | nb_NO |
dc.subject | zero bound | nb_NO |
dc.subject | liquidity trap | nb_NO |
dc.subject | inflation targeting | nb_NO |
dc.subject | determinacy | nb_NO |
dc.title | Price-Level Determinacy, Lower Bounds on the Nominal Interest Rate, and Liquidity Traps | nb_NO |
dc.type | Working paper | nb_NO |
dc.description.version | publishedVersion | nb_NO |
dc.subject.nsi | VDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212 | nb_NO |
dc.source.pagenumber | 34 | nb_NO |