Bénassy, Jean-Pascal - In: Economic Theory 27 (2006) 1, pp. 143-162
should respond more than one for one to inflation. This model yields explicit solutions for the optimal rule. We find that … underlying shocks, or which measure of inflation is used. In general the optimal elasticity of the interest rate with respect to … inflation needs not be greater than one. Copyright Springer-Verlag Berlin/Heidelberg 2006 …