Original paper
A Model of Secular Stagnation: Theory and Quantitative Evaluation
Abstract
This paper formalizes and quantifies the secular stagnation hypothesis, defined as a persistently low or negative natural rate of interest leading to a chronically binding zero lower bound (ZLB). Output-inflation dynamics and policy prescriptions are fundamentally different from those in the standard New Keynesian framework. Using a 56-period quantitative life cycle model, a standard calibration to US data delivers a natural rate ranging from −...
Paper Details
Title
A Model of Secular Stagnation: Theory and Quantitative Evaluation
Published Date
Jan 1, 2019
Volume
11
Issue
1
Pages
1 - 48