Is There a Trade-Off between Inflation and Output Stabilization?

Alejandro Justiniano, Giorgio Primiceri and Andrea Tambalotti

American Economic Journal: Macroeconomics, 2013, vol. 5, issue 2, 1-31

Abstract: We find that the answer is no in an estimated DSGE model of the US economy in which exogenous movements in workers' market power are not a major driver of observed economic fluctuations. If they are, the tension between the conflicting stabilization objectives of monetary policy increases, but with negligible effects on the equilibrium behavior of the economy under optimal policy. (JEL E12, E23, E24, E31, E32, E52)

JEL-codes: E12 E23 E24 E31 E32 E52 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/mac.5.2.1
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Citations: View citations in EconPapers (140)

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Related works:
Working Paper: Is there a trade-off between inflation and output stabilization? (2011)
Working Paper: Is there a trade-off between inflation and output stabilization? (2011)
Working Paper: Is there a trade-off between inflation and output stabilization? (2011)
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