The experience of a country like Japan, where interest rates have been at their floor for 2 decades now, and inflation is still undershooting the BoJ target of 2 per cent, is enough to test the faith of a New Keynesian and make one wonder whether the neo-Fisherians have a point. They maintain that inflation undershoots the target
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A neo-Fisherian experiment that hedges its…
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The experience of a country like Japan, where interest rates have been at their floor for 2 decades now, and inflation is still undershooting the BoJ target of 2 per cent, is enough to test the faith of a New Keynesian and make one wonder whether the neo-Fisherians have a point. They maintain that inflation undershoots the target