Working Paper
Disinflationary Booms?
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.
Key Words
- Disinflation
- Disinflationary Boom
- Inflation Targeting