The equilibrium rate of inflation with discretion and some reputation
DOI:
https://doi.org/10.13133/2037-3643/10635Keywords:
Monetary policy, equilibrium inflationAbstract
A review is undertaken of the large amount of literature dealing with the potential implications for the equilibrium inflation rate of allowing governments complete discretion with their use of monetary policy. This is a comparatively new body of literature. An analysis is attempted of the ultimate outcome, in terms of inflation and unemployment, of governments having complete discretion on monetary policy, and the private sector anticipating potential strategies by the government.
JEL: E52
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BNL Quarterly Review
(1 + al
Lr ~ (k - l)' y*2 + (1 + b)' u,'.
and from (16):
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expected 105s:
(22l
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