The Central Bank Inflation Bias in the Presence of Asymmetric Preferences and Non-Normal Shocks

We investigate the nature of the inflation bias in a model that exhibits asymmetries in preferences and nonâ€“normality in shocks but simplifies to the classic Barro-Gordon problem as a special case. The inflation bias is shown to depend on the trade-off between preference, structural and the scale and shape parameters of the model.

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Year of publication:	2009
Authors:	Christodoulakis, George ; Peel, David
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 29.2009, 3, p. 1608-1620
Publisher:	AccessEcon

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	E5 - Monetary Policy, Central Banking and the Supply of Money and Credit
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008562911