All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

George Christodoulakis and David Peel
''The Central Bank Inflation Bias in the Presence of Asymmetric Preferences and Non-Normal Shocks''
( 2009, Vol. 29 No.3 )
We investigate the nature of the inflation bias in a model that exhibits asymmetries in preferences and non–normality in shocks but simplifies to the classic Barro-Gordon problem as a special case. The inflation bias is shown to depend on the trade-off between preference, structural and the scale and shape parameters of the model.
JEL: E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
Manuscript Received : Aug 12 2008 Manuscript Accepted : Jul 07 2009

  This abstract has been downloaded 1791 times                The Full PDF of this paper has been downloaded 153794 times