Orphanides, Athanasios; Wilcox, David W - In: International Finance 5 (2002) 1, pp. 47-71
This paper explores the theoretical foundations of a new approach to monetary policy. Proponents of this approach hold that, when inflation is moderate but still above the long-run objective, the central bank should not take deliberate anti-inflation action but, rather, should wait for exogenous...