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Mariana Garcıa-Schmidt

By this expert

Are Low Interest Rates Deflationary? A Paradox of Perfect- Foresight Analysis

Paper Working Paper Series | By Mariana Garcıa-Schmidt and Michael Woodford | Sep 2015

A prolonged period of extremely low nominal interest rates has not resulted in high inflation. This has led to increased interest in the “Neo-Fisherian” proposition according to which low nominal interest rates may themselves cause inflation to be lower.