Is the Walsh Contract Really Optimal?
AbstractThe purpose of this paper is to show that the linear penalization to inflation found in Walsh (1995) is not the government's optimal choice when the fixed part of the transfer scheme is any given constant and the payment to the central bank represents a cost for the government.
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Bibliographic InfoArticle provided by Springer in its journal Public Choice.
Volume (Year): 120 (2004)
Issue (Month): 1_2 (07)
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Web page: http://www.springerlink.com/link.asp?id=100332
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