Why does high inflation raise inflation uncertainty? Ball, Laurence

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Author
Ball, Laurence
Appears In
Journal of Monetary Economics
Subjects
Inflation (Finance); Uncertainty -- Economic aspects; Inflation (Finance) -- Analysis
Audience
Academic; Trade
Summary
An analysis of inflation is presented. A model describing the behavior of inflation and its impact on future uncertainty is analyzed. It is shown that low actual and expected inflation levels will move monetary policy makers to keep them at those levels. However, high inflation leave policymakers with the dilemma of choosing between disinflation and the possibility of recession.
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http://trove.nla.gov.au/work/779813
Work ID
779813

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