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Journal article

Disinflationary Booms?

  • Abstract

    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.
  • Keywords

    Disinflation, Disinflationary Boom, Inflation Targeting
  • JEL classification

    E30, E31