000			01238nam a22001457a 4500
999			_c520992 _d520992
008			221207b ||||| |||| 00| 0 eng d
100			_aNakata, Taisuke and Schmidt, Sebastian _935756
245			_aExpectations-driven liquidity traps: Implications for monetary and fiscal policy
260			_aAmerican Economic Journal: Macroeconomics
300			_a14(4), Oct, 2022: p.68-103
520			_aWe study optimal time-consistent monetary and fiscal policy in a New Keynesian model where occasional declines in agents' confidence give rise to persistent liquidity trap episodes. Insights from widely studied fundamental-driven liquidity traps are not a useful guide for enhancing welfare in this model. Raising the inflation target, appointing an inflation-conservative central banker, or allowing for the use of government spending as an additional stabilization tool can exacerbate deflationary pressures and demand deficiencies during the liquidity trap episodes. However, appointing a policy-maker who is sufficiently less concerned with government spending stabilization than society eliminates expectations-driven liquidity traps.
773			_aAmerican Economic Journal: Macroeconomics
906			_aFISCAL POLICY
942			_cAR