Kirsanova, Tatiana; Vines, David; Wren-Lewis, Simon - C.E.P.R. Discussion Papers - 2006
We generalise the analysis of inflation bias with dynamic Phillips curves in three respects. First, we examine the …. Second, we show that the commitment (time inconsistent) solution does not normally involve zero inflation and output at its … for inflation in which steady state inflation is below its target. In this sense, we obtain negative inflation bias. Third …