Why has Deflation Continued under Extraordinary Monetary Expansion?

Keiichiro Kobayashi

Policy Discussion Papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: We propose a theoretical argument for a new rational expectations equilibrium hypothesis in the intergenerational economy, where each generation is intergenerationally altruistic and rational. The intergenerationally-rational expectations equilibrium implies that deflation can continue under an extreme increase in money supply.

Pages: 9 pages
Date: 2019-10
New Economics Papers: this item is included in nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:eti:polidp:19028

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