A framework for the analysis of moderate inflations

• 成果类型: Article; Proceedings Paper
• 署名作者: Goodfriend, M
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(97)00003-2
• 发表日期: 1997
• 页码: 45-65
• 关键词: Optimal monetary policy; inflation; unemployment

摘要

Optimal monetary policy is studied in a model with no contractual restrictions or physical costs of changing prices. Nevertheless, the price level is sticky in a range of mark-up indeterminacy, and inflation occurs only when employment presses against capacity. Under full information, the monetary authority can exploit price level stickiness to minimize the mark-up and keep employment at a constrained optimum without inflation, Under uncertainty, negative aggregate demand shocks produce real contractions and positive shocks raise the price level. The monetary authority can raise the likelihood that aggregate demand will maximize employment, hut at the cost of higher expected inflation.