MISHKIN, FREDERIC S.; WESTELIUS, NIKLAS J. - In: Journal of Money, Credit and Banking 40 (2008) 4, pp. 557-582
In this paper we provide a theoretical treatment of how inflation target ranges cope with the time-inconsistency problem arising from incentives for the monetary policymaker to exploit the short-run trade-off between employment and inflation to pursue short-run employment objectives, as in a...