In August 2007, when the first signs emerged of what would come to be the most damaging
global financial crisis since the Great Depression, the New Keynesian paradigm was …

Since the 2001 recession, average core inflation has been below the Federal Reserve's 2%
target. This deflationary bias is a predictable consequence of a symmetric monetary policy …

The secular decline in the equilibrium real interest rate observed over the past decades has
materially limited the room for policy-rate reductions in recessions, and has led to a marked …

Under conventional inflation targeting (IT), the lower bound on nominal interest rates gives
rise to a systematic downward bias in inflation that substantially reduces welfare. Using two …

This paper applies a New Keynesian model to analyze monetary policy in the presence of a
low natural rate of interest and a lower bound on interest rates. Under standard inflation …

This paper uses a standard New Keynesian model to analyze the effects and
implementation of various monetary policy frameworks in the presence of a low natural rate …

Even when the policy rate is currently not constrained by its effective lower bound (ELB), the
possibility that the policy rate will become constrained in the future lowers today's inflation by …

Negative policy rates can convince markets that deposit rates will remain lower-for-longer,
even when current deposit rates are constrained by zero. This is the signalling channel of …

In an economy with an occasionally binding zero lower bound (ZLB) constraint, the
anticipation of future ZLB episodes creates a trade-off for discretionary central banks …

We study optimal time-consistent monetary and fiscal policy in a New Keynesian model
where occasional declines in agents' confidence give rise to persistent liquidity trap …