Inflation and output in New Keynesian models with a transient interest rate peg

• 成果类型: Article
• 署名作者: Carlstrom, Charles T.; Fuerst, Timothy S.; Paustian, Matthias
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Cleveland; University of Notre Dame
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2015.09.004
• 发表日期: 2015
• 页码: 230-243
• 关键词: Fixed interest rate; Dynamic New Keynesian model; Forward guidance puzzles

摘要

A familiar result in the canonical Dynamic New Keynesian (DNK) model is that policy-makers constrained by the zero bound can improve outcomes by promising to keep rates low after the zero bound is not binding. We examine a general class of interest rate pegs in a variety of DNK models. Standard versions of the model produce counterintuitive reversals where the effect of the interest rate peg can switch from highly expansionary to highly contractionary for modest changes in the length of the interest rate peg. This unusual behavior does not arise in sticky information models of the Phillips curve. (C) 2015 Elsevier B.V. All rights reserved.