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Speech
Policy efficiency in supervision: remarks at Bank Regulation, Lending and Growth, The Bank Policy Institute and Columbia University’s School of International and Public Affairs, New York City
Remarks at Bank Regulation, Lending and Growth, The Bank Policy Institute and Columbia University?s School of International and Public Affairs, New York City.
Report
The inflation-output trade-off revisited
A rich literature from the 1970s shows that as inflation expectations become more and more ingrained, monetary policy loses its stimulative effect. In the extreme, with perfectly anticipated inflation, there is no trade-off between inflation and output. A recent literature on the interest-rate zero lower bound, however, suggests there may be some benefits from anticipated inflation when he economy is in a liquidity trap. In this paper, we reconcile these two views by showing that while it is true, at positive interest rates, that inflation loses its stimulative effects as it becomes better ...