Fischer, Andreas M. - In: Swiss Journal of Economics and Statistics (SJES) 133 (1997) III, pp. 539-556
A central issue for macroeconomic policy is the optimal speed of disinflation. The cold turkey view states that a credible disinflation is less costly if it is quick. An alternative view is that gradualism is less costly because of frictions in wage and price setting. Institutional factors, such...