The Neo-Fisherianism to Escape Zero Lower Bound

Siddhartha Chattopadhyay

A chapter in Environmental, Social, and Governance Perspectives on Economic Development in Asia, 2021, vol. 29A, pp 1-19 from Emerald Group Publishing Limited

Abstract: Sufficiently persistent rise in nominal interest increases inflation rate in short-run. This short-run comovement of nominal interest rate and inflation rate is known as Neo-Fisherianism. This chapter proposes a policy based on Neo-Fisherianism to escape Zero Lower Bound (ZLB) using a textbookForward Looking New Keynesian Model. I have shown that proposed policy with properly chosen inflation target and persistence can stimulate economy and escape ZLB by raising nominal interest rate. I have also shown that the proposed policy is robust to varying degrees of price stickiness.

Keywords: New Keynesian Model; Neo-Fisherianism; Zero Lower Bound; Inflation Target; Taylor Rule; Optimal Policy; E31; E43; E52; E63 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... 1-03862021000029A016
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
Working Paper: The Neo-Fisherianism to Escape Zero Lower Bound (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:isetez:s1571-03862021000029a016

DOI: 10.1108/S1571-03862021000029A016

Access Statistics for this chapter

More chapters in International Symposia in Economic Theory and Econometrics from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().