Buiter, Willem H. - C.E.P.R. Discussion Papers - 1985
of price level and inflation inertia. The credibility of current announcements of future monetary policy is a necessary … accommodate the fall in velocity that follows the disinflation. With a sluggish price level and sluggish core inflation, tax cuts … (or incomes policy) are necessary for costless disinflation. In general, the elimination of inflation can only be gradual …