Chari, Varadarajan V.; Kehoe, Patrick J. - 2002
inconsistency problem in monetary policy leads to a novel type of free-rider problem in the setting of nonmonetary policies, such as … labor market policy, fiscal policy, and bank regulation.The free-rider problem leads the union's members to pursue lax … nonmonetary policies that induce the monetary authority to generate high inflation.The free-rider problem can be mitigated by …