This paper offers an alternative explanation for the behavior of postwar US inflation by measuring a novel source of monetary policy time-inconsistency due to Cukierman (2002). In the presence of asymmetric preferences, the monetary authorities end up generating a systematic inflation bias...

Founded in 1992, Sussex European Institute (SEI) is the leading research and postgraduate training centre on contemporary European issues. SEI has a distinctive philosophy built on interdisciplinarity, a broad and inclusive approach to Europe, policy-relevance at the academic cutting edge, and...

Please note that the EPERN was originally launched as the Opposing Europe Research Network (OERN) but in August 2003 the Network was retitled to reflect a broadening out of the Network's research focus. EPERN Working Papers are therefore a continuation of the original OERN Working Paper Series.