Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Since the 2007 crisis, macroeconomists have been interested in monetary policies that could help with stabilizing inflation and output (Honkapohja, 2015). Two ideas gained particular attention: (i) that inflation should be replaced by the nominal price level (PLT) as the target for the central bank; and (ii) that the central bank should provide explicit guidance about its interest rate rule. We conduct a laboratory experiment to test the validity of these two hypotheses.