Working Paper

Disinflationary Booms?

Kiel, 1851

This paper shows that announced credible disinflations under inflation targeting lead to a boom in a standard New Keynesian model (i.e. a disinflationary boom). This finding is robust with respect to various parameterizations and disinflationary experiments. Thus, it differs from previous findings about disinflationary booms under monetary targeting.

Author

Christian Merkl

Info

Publication Date
JEL Classification
E30, E31