Inflation targeting needs to be supplemented by an economic growth target so that central banks will not adopt monetary policy which results in stagnation. There is no guarantee that the economy will move towards full employment by itself when the inflation rate is kept between two to three per...

In this paper, we use panel data from 1971 to 1985 to test the hypothesis that differences in monetary and wage institutions can explain a significant fraction of the variations in the macroeconomic performance of 10 OECD countries following the OPEC shocks of 1973-74 and 1979-80. After...

In this paper we investigate the relationship between inflation and unemployment in Australia, post 1959. We focus on two features of the data: firstly, we find that forecasting models are surprisingly stable through our sample period. We also estimate the nonaccelerating inflation rate of...

In this paper, panel data from 15 OECD countries (1971-1990) are used to test the hypothesis that differences in monetary and labour market institutions explain a significant portion of the surprisingly diverse inflation and unemployment experiences among similarly developed economies. As an...

We examine the relationship between inflation and unemployment in the long run,using quarterly US data from 1952 to 2010. Using a band-pass filter approach, we find strong evidence that a positive relationship exists, where inflation leads unemployment by some 3 to 3.5 years, in cycles that last...

A time-varying Phillips curve was estimated as a means to examine the changing nature of the relationship between wage inflation and the unemployment rate in Australia. The implied time-varying equilibrium unemployment rate was generated and the analysis showed the important role played by...

This paper examines the sensitivity of inequality and poverty measures to the adult equivalence scale and the unit of analysis. Comparisons are made using parametric equivalence scales, and income units include individuals, equivalent adults and households. The role of the correlation between...

Extensive research has shown that few robust results regarding the optimal tax structure are available. Moreover, the stylised models used in optimal tax analyses are not appropriate for practical policy advice. This paper proposes a method of examining optimal marginal income tax reforms using...

The willingness of individuals to enforce social norms can have important welfare implications. All the experimental evidence on norm enforcement so far comes from laboratory experiments and indicates that many participants are indeed willing to enforce norms, even in one-shot interactions. We...

This paper examines methods used to evaluate welfare effects of tax changes, with emphasis on the measurement problems involved. Welfare changes and excess burdens are defined, along with approximations. Aggregate measures, using a social welfare function, are examined. A special case of income...