Inflation targeting and the liquidity trap

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Date

2002

Journal Title

Journal ISSN

Volume Title

Publisher

Banco Central de Chile

Abstract

Description

This paper considers whether issues regarding liquidity trap or zero lower bound phenomena substantially affect the case for inflation targeting, in comparison with other possible strategies for conducting monetary policy. It examines both theoretical and empirical issues and, in the latter case, emphasizes the importance of an economy's openness to foreign trade in goods and securities.

Keywords

INFLACIÓN, LIQUIDEZ (ECONOMÍA), POLÍTICA MONETARIA

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