Series: IMF Working Papers
Author(s): Zineddine Alla , Raphael Espinoza , and Atish Ghosh
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 10 March 2016
Keywords: Unconventional monetary policy, equilibrium indeterminacy, stabilization bias, inflationary bias, instrument, instruments, inflation, monetary policy, interest, Monetary Policy (Targets
This paper analyzes the use of unconventional policy instruments in New Keynesian setups in which the ‘divine coincidence' breaks down. The paper discusses the role of a second instrument and its coordination with...