Is there a Trade-Off between Inflation and Output Stabilization?
Is there a Trade-Off between Inflation and Output Stabilization?
Justiniano, Alejandro; Primiceri, Giorgio E; Tambalotti, Andrea
2013-04-01 00:00:00
Abstract We find that the answer is no in an estimated DSGE model of the US economy in which exogenous movements in workers' market power are not a major driver of observed economic fluctuations. If they are, the tension between the conflicting stabilization objectives of monetary policy increases, but with negligible effects on the equilibrium behavior of the economy under optimal policy. (JEL E12, E23, E24, E31, E32, E52 )
http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.pngAmerican Economic Journal: MacroeconomicsAmerican Economic Associationhttp://www.deepdyve.com/lp/american-economic-association/is-there-a-trade-off-between-inflation-and-output-stabilization-RLqq0j49Vi
Is there a Trade-Off between Inflation and Output Stabilization?
Abstract We find that the answer is no in an estimated DSGE model of the US economy in which exogenous movements in workers' market power are not a major driver of observed economic fluctuations. If they are, the tension between the conflicting stabilization objectives of monetary policy increases, but with negligible effects on the equilibrium behavior of the economy under optimal policy. (JEL E12, E23, E24, E31, E32, E52 )
Journal
American Economic Journal: Macroeconomics
– American Economic Association
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