Title: Price-level determinacy, lower bounds on the nominal interest rate, and liquidity traps
Description: "We consider monetary-policy rules with inflation-rate targets and interest-rate or money-growth instruments using a flexible-price, perfect-foresight model.  There is always a locally-unique target equilibrium.  There may also be below-target equilibria (BTE) with inflation always below target and constant, asymptotically approaching or eventually reaching a below-target value, or oscillating.  Liquidity traps are neither necessary nor sufficient for BTE which can arise if monetary policy keeps the interest rate above a lower bound.  We construct monetary rules that preclude BTE when fiscal policy does not.  Plausible fiscal policies preclude BTE for any monetary policy; those policies exclude surpluses and, possibly, balanced budgets"--Federal Reserve Board web site.