A QUANTITIVE EXPLORATION OF THE OPPORTUNISTIC APPROACH TO DISINFLATION

Under a conventional policy rule, a central bank adjusts its policy rate linearly according to the gap between inflation and target, and the gap between output and its potential.

Subjects

• Monetary policy.
• Interest rates
• Deflation (Finance)

Details

• From
  Journal of Monetary Economics, vol. 53/8, 2006, pp. 1877-1893