The Optimal Perception of Inflation Persistence is Zero

This study shows that, in an economy with inflation persistence, it is always welfare improving for a central bank that operates under discretion to behave as if there were no inflation persistence. Under reasonable assumptions about inflation persistence, all of the inefficiency associated with discretionary policymaking is then removed. Copyright The editors of the "Scandinavian Journal of Economics" 2007 .

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Year of publication:	2007
Authors:	Leitemo, Kai
Published in:	Scandinavian Journal of Economics. - Wiley Blackwell, ISSN 1467-9442. - Vol. 109.2007, 1, p. 107-113
Publisher:	Wiley Blackwell

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

Persistent link: https://www.econbiz.de/10005226198