Debelle, Guy; Fischer, Stanley - Federal Reserve Bank of San Francisco - 1994
. ; Second we present a theoretical model which allows us to consider the optimal degree of inflation aversion of the central … bank. We show that society will be better off if the central bank precommits to an inflation rate, provided the fiscal … that a tradeoff exists between output and inflation variability, the tradeoff should not be left to the central bank, that …