Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/175404
Authors: 
Spahn, Peter
Year of Publication: 
2018
Series/Report no.: 
Hohenheim Discussion Papers in Business, Economics and Social Sciences No. 02-2018
Abstract: 
In recent years, various "unconventional" views have been advanced that promise to offer new analytical insights and policy approaches that are suited to control the value of money, particularly in a constellation of low growth and unemployment. Whereas Forward Guidance attempts to decrease the real interest rate by low nominal rates and by creating excessive inflationary expectations, the Neo-Fisherian approach suggests to increase nominal rates immediately to the long-run equilibrium value that corresponds to the inflation target. The Fiscal Theory of the Price Level believes that goods prices jump to a level that validates the long-run sustainability condition of government debt. All three views are criticized for analytical and empirical reasons.
Subjects: 
interest rate policy
zero-lower bound
low-growth equilibrium
JEL: 
E52
E58
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
488.85 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.