Time-consistent policy and persistent changes in inflation

• 成果类型: Article
• 署名作者: Ball, L
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/0304-3932(95)01218-4
• 发表日期: 1995
• 页码: 329-350
• 关键词: inflation

摘要

This paper presents a model of dynamically consistent monetary policy that explains changes in inflation over time. In the model - as in the postwar United States - adverse supply shocks trigger increases in inflation. High inflation persists until a tough policy-maker causes a recession to disinflate. The paper also proposes an approach to selecting a unique equilibrium in infinite-horizon models of monetary policy.