Carlstrom, Charles T. (contributor); … - 2004 - [Elektronische Ressource]
tUi
r
c
c
t
t
t
βπ
, where r
t
denotes the real
rate of interest and π
t+1
is the net inflation rate between t and t+1 … inflation rate necessarily imply
movements in relative prices. These relative price fluctuations lead to a sub …
Note the importance of history: the optimal value of the current inflation rate depends on
lagged realized inflation and …