Andrade, Philippe; Galí, Jordi, 1961-; Le Bihan, Hervé; Matheronc, Julien
(Elsevier, 2021)
We address this question using an estimated New Keynesian DSGE model of the Euro Area with trend inflation, imperfect indexation, and a lower bound on the nominal interest rate. In this setup, a decrease in the steady-state ...