Contributions

  • Svensson, Lars E. O. - Contributor
  • National Bureau of Economic Research. - Contributor

Publication

2004 - National Bureau of Economic Research, Cambridge, MA, Massachusetts

Language

English

Word Count

10,750 words, Guess

Page Count

43 pages

Physical Format

Electronic resource

Identifiers

Classifications

  • LCCHB1

Description

"An independent central bank can manage its balance sheet and its capital so as to commit itself to a depreciation of its currency and an exchange-rate peg. This way, the central bank can implement the optimal escape from a liquidity trap, which involves a commitment to higher future inflation. This commitment mechanism works even though, realistically, the central bank cannot commit itself to a particular future money supply. It supports the feasibility of Svensson's Foolproof Way to escape from a liquidity trap"--National Bureau of Economic Research web site.

Subjects

Series Statement

  • NBER working paper series ;
  • working paper 10679
  • Working paper series (National Bureau of Economic Research : Online) ;
  • working paper no. 10679.

Links

Other Editions

  • Credible commitment to optimal escape from a liquidity trapElectronic resourceNational Bureau of Economic Research2004

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