Schulze, H. - Nationalekonomiska Institutionen, Uppsala Universitet - 1996
Sargent and Wallace (1981) have shown by an example, termed "spectacular", that a lowering of the growth rate of money … may in some cases increase the rate of inflation - not only in the end, but even from the start. I show that this … "spectacular" result ceases to hold if the central bank is restricted always to choose the lowest final inflation rate. On the …