Benigno, Pierpaolo (contributor); … - 2005
Columbia University
Department of Economics
Discussion Paper Series
Optimal Inflation … target output). At the same,
11
0 2 4 6 8 10 12−2
0
2
4
inflation
0 2 4 6 8 10 12
−5
0
5
output
0 2 4 6 8 10 120
0.5
1
1.5
2 ….06
0.07
Inflation
ρ= 0
ρ=.1
ρ=.3
ρ=.7
Figure 5: Impulse response of the in ation rate to a pure flscal shock, for …