Fiscal Multipliers at the Zero Lower Bound: The Role of Policy Inertia
The presence of the lagged shadow policy rate in the interest rate feedback rule reduces the government spending multiplier nontrivially when the policy rate is constrained at the zero lower bound (ZLB). In the economy with policy inertia, increased inflation and output due to higher government spen...
Hills, Timothy S
|Place of publication:||
|Data of publication:||2014-11-20|
|Online Access:||available in Bonn?|
|Database:||OpenAIRE (Open Access)
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