Chortareas, Georgios E.; Miller, Stephen M. - In: Bulletin of Economic Research 55 (2003) 1, pp. 101-112
We reconsider the optimal central banker contract derived in Walsh (1995). We show that if the government"s objective function places weight (value) on the cost of the contract, then the optimal inflation contract does not completely neutralize the inflation bias. Furthermore, the more concerned...
