A Simple Theory of the Inflation-Uncertainty Relationship
AbstractThis paper will show that in the presence of real uncertainty an increase in the perfectly anticipated growth rate of the money supply will cause an increase in both expected inflation and inflation uncertainty due to what is termed amplification effects.
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Bibliographic InfoPaper provided by University College Cork - Department of Economics in its series Papers with number 96-3.
Length: 7 pages
Date of creation: 1996
Date of revision:
Contact details of provider:
Postal: Ireland; University College Cork, Department of Economics, Cork Ireland
Web page: http://www.ucc.ie/ucc/depts/economics/
More information through EDIRC
INFLATION; UNCERTAINTY; MONEY; MONETARY POLICY;
Find related papers by JEL classification:
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
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