Lima, Gilberto Tadeu; Setterfield, Mark - In: Journal of Post Keynesian Economics 30 (2008) 3, pp. 435-461
This paper examines the compatibility of inflation targeting with an economy that is Post Keynesian in character. We show that in a Post Keynesian environment, policymakers can both set and achieve an inflation target without adverse consequences for the real economy, as long as an appropriate...