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Literature on Expectations and the Federal Reserve?
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Yellen recently claimed that it's likely that the Federal Reserve will finally start raising rates from the ZLB, I was wondering if there was any literature dealing with breaks from prolonged periods at the ZLB, such that saying "oh, we're clearly following a Taylor rule" might not be considered credible monetary policy by the market. More broadly, looking at papers that might apply dynamic games to monetary policy problems.

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9 years ago