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RePEcMacro-Finance & Rates

Inflation Targeting and Zero Lower Bound Risk: Cross-Country Evidence

Switzerland and Japan face the highest risk of hitting the zero bound under current inflation targets; higher average inflation substantially reduces this constraint.

Featured in No. 135 on 16 Oct 2026 · 11 days after release

Zero lower bound probability curves across eight countries by inflation target level.
FIGURE 3: CUMULATIVE PROBABILITY OF REACHING THE ZLB AT LEAST ONCE (%) – VAR (5)
Released
5 Oct 2026
First featured
No. 135 · 16 Oct 2026
Published in
Not yet, as far as Semantic Scholar knows
Fanfare
2 of 5
Identifier
RePEc:ise:remwps:wp04282026
Authors
António Afonso and Leonardo Zorzi

Citations and venue from Semantic Scholar (ODC-BY), refreshed weekly. Summary: Quant Letter (CC BY 4.0).

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