Adam, Klaus; Billi, Roberto M. - In: Journal of Monetary Economics 55 (2008) 8, pp. 1376-1388
Does an inflation conservative central bank à la Rogoff (1985) remain desirable in a setting with endogenous fiscal policy? To provide an answer we study monetary and fiscal policy games without commitment in a dynamic, stochastic sticky-price economy with monopolistic distortions. Monetary...