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- W2019802648 abstract "Abstract This paper analyzes the optimal intertemporal choice of inflation and unemployment rates in two versions of a simple dynamic macro model. In the first of these the real wage remains fixed, while in the second the real wage is permitted to adjust endogenously. The implications for the long run as well as the transitional dynamic adjustment paths are discussed in detail. In the long run, the optimal policy will drive the economy to its natural rate of unemployment, accompanied by a steady rate of inflation which can be described in terms of a number of parameters characterizing the economy and the preferences of the policy maker. The transitional dynamic adjustment path also depends upon these parameters, among which the rate of time discount is particularly important." @default.
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- W2019802648 date "1981-11-01" @default.
- W2019802648 modified "2023-09-27" @default.
- W2019802648 title "The optimal intertemporal choice of inflation and unemployment An analysis of the steady state and transitional dynamics" @default.
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- W2019802648 doi "https://doi.org/10.1016/0165-1889(81)90027-0" @default.
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