Bergholt, Drago; Røisland, Øistein; Sveen, Tommy; … - 2022
inflation to increase in the short run. Traditional monetary policy regimes, such as inflation targeting or a fixed exchange … relative prices during the transition, but may also lead to a period of high unemployment. We show how an appropriate monetary … rate, would imply high unemployment and inefficiently slow transition. Stabilizing nominal wage growth, in contrast, would …