Series: IMF Working Papers
Author(s): Francisco Nadal De Simone
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 December 2001
Keywords: output variance, Markov-switching, inflation, reduction in inflation, inflation-targeting, Econometric Methods: - Multiple/simultaneous Equation Models, Central Banking, And The Supply Of Money And Credit, macroeconomic Aspects Of International Trade And Finance,
Since Taylor estimated a trade-off between inflation and output variance, it has been widely accepted that efforts to keep the inflation rate “too low and stable” will likely result in relatively larg...