In the New Keynesian Rational Expectations model with a Taylor rule, if the central bank follows the Taylor principle, in the steady state in which nominal interest rate is zero

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In a steady state with a zero nominal interest rate, the Taylor principle implies that inflation must be lower than the central bank's target to maintain equilibrium, as the central bank would need to lower rates to stimulate the economy when inflation is below target.

In the New Keynesian Rational Expectations Model with a Taylor