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Kiel Institute for World Economics Kiel Working Papers, Kiel Institute for World Economics

No 1851:
Disinflationary Booms?

Christian Merkl

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; (follow links to similar papers)

JEL-Codes: E30,; E31; (follow links to similar papers)

12 pages, July 2013

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