Why might the effective lower bound on nominal interest rates lead policymakers to raise their inflation objective?

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Money Banking and Financial Markets

ISBN: 978-1259746741

5th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Question Posted: Jun 09, 2018 01:37 AM

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Why might the effective lower bound on nominal interest rates lead policymakers to raise their inflation objective?

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The term inflation means too much money chases too few goods There are ...View the full answer

Money Banking and Financial Markets

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