We compute a sunspot equilibrium in an estimated small-scale New Keynesian model with a
zero lower bound (ZLB) constraint on nominal interest rates and a full set of stochastic …

We investigate the degree of anchoring in inflation expectations for different advanced
economies using data from professional forecasters' surveys. We define expectations as …

The paper shows that in a New Keynesian (NK) model, an active interest rate feedback
monetary policy, when combined with a Ricardian passive fiscal policy, à la Leeper …

A monetary authority can be committed to pursuing an inflation, price-level, or nominal-GDP
target, yet systematically fail to achieve the prescribed goal. Constrained by the zero lower …

Based on the arguments that a more transparent fiscal system provides policymakers with
incentives to adopt better policies, in this study, we assess whether fiscal transparency …

A calibrated New Keynesian model of the euro area is used to evaluate the stabilization
properties of alternative monetary policy strategies when the natural rate of interest is low …

The paper studies how a prolonged period of subdued price developments may induce a de-
anchoring of inflation expectations from the central bank's objective. This is shown within a …

In the presence of the zero lower bound, standard business cycle models with a Taylor-type
monetary policy rule are prone to equilibrium multiplicity. A drop in private sector confidence …

We consider an infinite horizon neoclassical model with a government that (i) balances its
budget at each point in time,(ii) faces unavoidable (incompressible) public expenditures …

We investigate the degree of anchoring in inflation expectations for different advanced
economies using data from professional forecasters' surveys. We define expectations as …