search query: @indexterm Monetary Policy / total: 1108
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| Author: | Leitemo, K. |
| Title: | The optimal perception of inflation persistence is zero |
| Journal: | Scandinavian Journal of Economics
2007 : VOL. 109:1, p. 107-113 |
| Index terms: | inflation monetary policy |
| Freeterms: | time inconsistency |
| Language: | eng |
| Abstract: | This article shows that, in an economy with inflation persistence, it is always welfare improving for central bank that operates under discretion to behave as if there were no inflation persistence. All of the inefficiency assosiated with discretionary policymaking is removed under reasonable assumption about inflation persistence. |
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