High trend inflation and passive monetary detours

Guido Ascari, Anna Paola Florio, Alessandro Gobbi, Anna Florio

Risultato della ricerca: Contributo in rivistaArticolo in rivista


Does the long-run Taylor principle (Davig and Leeper, 2007) hold when both monetary and fiscal policies can switch and there is positive trend inflation? We find that with high trend inflation passive monetary detours are no longer possible, whatever fiscal policy is in place. This has important policy implications in terms of flexibility and monetary–fiscal authorities coordination.
Lingua originaleEnglish
pagine (da-a)138-142
Numero di pagine5
RivistaEconomics Letters
Stato di pubblicazionePubblicato - 2018


  • Trend inflation, Monetary–fiscal policy interactions, Markov-switching, Determinacy


Entra nei temi di ricerca di 'High trend inflation and passive monetary detours'. Insieme formano una fingerprint unica.

Cita questo