Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5062077 | Economics Letters | 2007 | 7 Pages |
Abstract
We assume that, while the central bank has an information advantage in respect of aggregate productivity shocks, the private sector has superior knowledge of local disturbances. It is shown that there is no policy trade-off between inflation and employment stability: moreover macroeconomic outcomes are independent of the weight assigned to inflation by the central bank.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Jonathan G. James, Phillip Lawler,