Economics, Econometrics and Finance
8 years ago

Cost-push shocks in low inflation, high debt scenario worsen economic downturn.

1 view
SSRN Electronic Journal
Inflation, Debt and the Zero Lower Bound
Stefano Neri, Alessandro Notarpietro

Paper Summary

The article explores how low inflation rates and high debt levels can hurt the economy when interest rates are already at rock bottom. Even when prices are falling, the economy may not improve as expected due to this unique situation.

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