Heeding Daedalus: Optimal Inflation and the Zero Lower Bound

By John C. Williams. 2009

153 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/541557c2079c9a00cadb729566a9dccd803d7c15

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In Economics and Econometrics

Citations in the corpus

Rethinking Macroeconomic Policy (2010, unknown): “Higher average inflation—and thus higher nominal interest rates to start with—would have made it possible to cut interest rates more, thereby reducing the drop in output and the deterioration of fiscal positions (Williams 2009).”
Have We Underestimated the Likelihood and Severity of Zero Lower Bound Events (2011, result): “Indeed, under some assumptions, a policymaker could have arguably 25 | P a g e wished to push the nominal funds rate almost 300 basis points below zero.24 These results are consistent with those of Williams (2009).”
The Case for a Long-Run Inflation Target of Four Percent (2014, background): “1 Williams (2009) finds that the costs of zero-bound episodes can be substantial with a two percent inflation target.”
The Macroeconomics of Trend Inflation (2014, unknown): “…to visit the article page and view author disclosure statement(s). a higher target rate of inflation even in normal times to allow more room for monetary policy to react to deflationary shocks (e.g., Blanchard, Dell’Ariccia, and Mauro 2010; Williams 2009; and Ball 2013).”
The Optimal Inflation Rate in New Keynesian Models: Should Central Banks Raise Their Inflation Targets in Light of the Zero Lower Bound? (2012, methodology): “Billi (2011) and Walsh (2009), for example, use a New Keynesian model log-linearized around zero steady-state inflation and therefore do not explicitly incorporate the positive relationship between the level and volatility of inflation, while Williams (2009) relies on a non-microfounded model.”