Hayat, Zafar; Ahmed, Jameel; Balli, Faruk - In: Journal of Economic Studies 46 (2019) 6, pp. 1224-1240
Purpose: The conventional and new inflation bias theories present two distinct facets to explain the outcome of excess inflation without output gains by a discretionary central banker. First is the temptation to achieve a higher than potential output, and, second is not to let it falter. The...