Canzoneri, Matthew B; Nolan, Charles; Yates, Tony - C.E.P.R. Discussion Papers - 1996
Canzoneri (1985) and Rogoff (1985) showed that imposing symmetric penalties on a central bank for deviations from an announced inflation target would reduce the Barro-Gordon inflation bias, but only at the expense of distorting the central bank’s stabilization effort. More recently, Walsh...