Is the Walsh Contract Really Optimal?

The purpose of this paper is to show that the linear penalization to inflation found in Walsh (1995) is not the government's optimal choice when the fixed part of the transfer scheme is any given constant and the payment to the central bank represents a cost for the government.

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Year of publication:	2004
Authors:	Candel-Sánchez, Francisco ; Campoy-Miñarroy, Juan Cristóbal
Published in:	Public Choice. - Springer. - Vol. 120.2004, 1_2, p. 29-39
Publisher:	Springer

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005705857