{"product_id":"international-finance-discussion-papers-price-level-determinacy-lower-bounds-on-the-nominal-interest-rate-and-liquidity-traps-1288728689","title":"International Finance Discussion Papers: Price-Level Determinacy, Lower Bounds on the Nominal Interest Rate, and Liquidity Traps","description":"\u003cp\u003e\u003cstrong\u003eISBN:\u003c\/strong\u003e 1288728689\u003c\/p\u003e\u003cp\u003e\u003cstrong\u003eAuthor:\u003c\/strong\u003e Alstadheim, Ragna\u003c\/p\u003e\u003cp\u003e\u003cstrong\u003eCondition:\u003c\/strong\u003e New\u003c\/p\u003e\u003cp\u003eWe consider 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 may also be below-target equilibria (BTE) with inflation always below target and constant, asymptotically approaching or eventually reaching a below-target value, or oscillating. 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 rules that preclude BTE when fiscal policy does not. Plausible fiscal policies preclude BTE for any monetary policy; those policies exclude surpluses and, possibly, balanced budgets.\u003c\/p\u003e","brand":"Mia Karts","offers":[{"title":"Default Title","offer_id":51964258746656,"sku":"NEW1288728689","price":18.9,"currency_code":"USD","in_stock":false}],"url":"https:\/\/miakarts.com\/products\/international-finance-discussion-papers-price-level-determinacy-lower-bounds-on-the-nominal-interest-rate-and-liquidity-traps-1288728689","provider":"Miakarts Books","version":"1.0","type":"link"}