Barro, Robert J.; Gordon, David B. - In: Credit and Capital Markets – Kredit und Kapital 52 (2019) 4, pp. 505-526
A discretionary policymaker can create surprise inflation, which may reduce unemployment and raise government revenue … expectations. Then, we find that (1) the rates of monetary growth and inflation are excessive; (2) these rates depend on the slope … inflation; (3) the monetary authority behaves countercyclically; and (4) unemployment is independent of monetary policy …