Adam, Klaus; Billi, Roberto M. - In: Journal of Monetary Economics 55 (2008) 8, pp. 1376-1388
Does an inflation conservative central bank à la Rogoff (1985) remain desirable in a setting with endogenous fiscal … optimal inflation rate internalizing this distortion is positive, but lack of monetary commitment generates too much inflation … period, the monetary authority should focus exclusively on stabilizing inflation. Monetary conservatism then eliminates the …