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- W1868734666 abstract "doing effects in a macroeconomic model. We show that an inflation bias arises because monetary surprises may be exploited to maximise potential output by temporarily raising the rate of human capital accumulation. Our model also provides an alternative explanation for the empirical evidence linking inflation and growth, where the causal link goes from slow growth to high inflation. Unlike traditional credibility models, an inflationary bias can persist even when the authorities do not wish to offset labour market distortions through monetary surprises which undercut the median voter's income." @default.
- W1868734666 created "2016-06-24" @default.
- W1868734666 creator A5001987183 @default.
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- W1868734666 date "1998-10-01" @default.
- W1868734666 modified "2023-09-27" @default.
- W1868734666 title "Credibility and monetary policy in a model with growth" @default.
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- W1868734666 doi "https://doi.org/10.1093/oep/50.4.644" @default.
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