Search Results

Showing results 1 to 1 of approximately 1.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:History-dependent policy 

Working Paper
From Taylor's Rule to Bernanke's Temporary Price Level Targeting

Bernanke's strategies for integrating forward guidance into conventional instrument rules anticipate that effective lower bound (ELB) episodes may become part a regular occurrence and that monetary policy should recognize this likelihood (Bernanke (2017a); Bernanke (2017b)). Bernanke's first proposal is a form of flexible temporary price level targeting (TPLT), in which a lower-for-longer policy path is prescribed through a ?shadow rate?. This shadow rate accounts for cumulative shortfalls in inflation and output relative to exogenous trends, and the policy rate is kept at the ELB until the ...
Finance and Economics Discussion Series , Paper 2018-051

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

E32 1 items

E52 1 items

E58 1 items

PREVIOUS / NEXT