Liberty Street Economics: Disinflation Policies with a Flat Phillips Curve

F E D E R A L   R E S E R V E   B A N K   o f   N E W  Y O R K LIBERTY STREET ECONOMICS   Disinflation Policies with a Flat Phillips Curve   Marco Del Negro, Aidan Gleich, Shlok Goyal, Alissa Johnson, and Andrea Tambalotti   The authors use the New York Fed DSGE model to study how alternative monetary policy strategies might contribute to bringing inflation back down to 2 percent. Their main finding is that there is no monetary silver bullet. Due to a flat Phillips curve—a well-documented feature of the economic environment of the last three decades—monetary policy can only achieve faster disinflation at a considerable cost in terms of forgone economic activity. This is true regardless of the systematic approach followed by the central bank in the model to pursue its objective.   READ MORE

 

 

 

 

 

 

 

 

Stay Connected:  @NewYorkFed | @NYFedResearch  | Facebook | LinkedIn | YouTube Download our  Economic Research Tracker to your iPhone® or iPad® Unsubscribe | Got this from a friend? Subscribe.

---

This email was sent to franchmaverickk.secretwords123@blogger.com using GovDelivery Communications Cloud on behalf of the Federal Reserve Bank of New York