全球智库信息集成服务系统(G2TT): DP16042 Should the ECB Adjust its Strategy in the Face of a Lower r*?

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP16042
	*DP16042 Should the ECB Adjust its Strategy in the Face of a Lower r?**
	Philippe Andrade; Jordi Gali; Hervé Le Bihan; Julien Matheron
发表日期	2021-04-15
出版年	2021
语种	英语
摘要	We address this question using an estimated New Keynesian DSGE model of the Euro Area with trend inflation, imperfect indexation, and a lower bound on the nominal interest rate. In this setup, a decrease in the steady-state real interest rate, r*, increases the probability of hitting the lower bound constraint, which entails significant welfare costs and warrants an adjustment of the monetary policy strategy. Under an unchanged monetary policy rule, an increase in the inflation target of eight tenth the size of the drop in the real natural rate of interest is warranted. Absent an increase in the inflation target, and assuming the effective lower bound prevents the ECB from implementing more aggressive negative interest rate policies, adjusting the monetary strategy requires considering alternative instruments or policy rules, such as committing to make-up for recent, below-target inflation realizations.
主题	Monetary Economics and Fluctuations
关键词	Inflation target Effective lower bound Monetary policy strategy Euro-area
URL	https://cepr.org/publications/dp16042
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/545022
推荐引用方式 GB/T 7714	Philippe Andrade,Jordi Gali,Hervé Le Bihan,et al. DP16042 Should the ECB Adjust its Strategy in the Face of a Lower r*?. 2021.