DP8407 Is there a trade-off between inflation and output stabilization?
Author(s): | Alejandro Justiniano, Giorgio E Primiceri, Andrea Tambalotti |
Publication Date: | June 2011 |
Keyword(s): | optimal policy, output gap, potential output |
JEL(s): | E30, E52 |
Programme Areas: | International Macroeconomics |
Link to this Page: | cepr.org/active/publications/discussion_papers/dp.php?dpno=8407 |
Not in an estimated DSGE model of the US economy, once we account for the fact that most of the high-frequency volatility in wages appears to be due to noise, rather than to variation in workers' preferences or market power.