Baeriswyl, Romain; Cornand, Camille - In: Revue économique 58 (2007) 3, pp. 661-670
The accommodating monetary policy of the 70s is usually rationalized within the Barro-Gordon framework. By contrast, this article shows that, even in the absence of inflationary bias, a credible central bank finds it optimal to accommodate monetary policy in response to cost-push shocks whenever...