Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/17857 
Erscheinungsjahr: 
2007
Schriftenreihe/Nr.: 
Kiel Working Paper No. 1341
Verlag: 
Kiel Institute for the World Economy (IfW), Kiel
Zusammenfassung: 
We examine global economic dynamics under learning in a New Keynesian model in which the interest-rate rule is subject to the zero lower bound. Under normal monetary and fiscal policy, the intended steady state is locally but not globally stable. Large pessimistic shocks to expectations can lead to deflationary spirals with falling prices and falling output. To avoid this outcome we recommend augmenting normal policies with aggressive monetary and fiscal policy that guarantee a lower bound on inflation. In contrast, policies geared toward ensuring an output lower bound are insufficient for avoiding deflationary spirals.
Schlagwörter: 
Adaptive Learning
Monetary Policy
Fiscal Policy
Zero Interest Rate Lower Bound
Indeterminacy
JEL: 
E58
E52
E63
Dokumentart: 
Working Paper

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