Chari, Varadarajan V.; Kehoe, Patrick J. - 2021
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 …