Khan, Shujaat; Knotek, Edward S. - In: Journal of Economic Dynamics and Control 52 (2015) C, pp. 39-54
This paper revisits the phenomenon of stagflation. Using a standard New Keynesian dynamic, stochastic general equilibrium model, we show that stagflation from monetary policy alone is a very common occurrence when the economy is subject to both deviations from the policy rule and a drifting...