Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5060054 | Economics Letters | 2012 | 4 Pages |
Abstract
Disclosure of monetary policy targets reduces unemployment uncertainty at the expense of higher inflation uncertainty, thereby posing a dilemma for monetary policymakers.
⺠Central bank interaction with wage setters is studied under uncertain policy targets. ⺠Revealing policy targets dampens unemployment at the expense of inflation stability. ⺠It is best to disclose the inflation target and to conceal the unemployment target.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Marcelo Sánchez,