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Is there a trade-off between inflation and output stabilization?

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  • Justiniano, Alejandro
  • Primiceri, Giorgio E
  • Tambalotti, Andrea

Abstract

Not in an estimated DSGE model of the US economy, once we account for the fact that most of the high-frequency volatility in wages appears to be due to noise, rather than to variation in workers' preferences or market power.

Suggested Citation

  • Justiniano, Alejandro & Primiceri, Giorgio E & Tambalotti, Andrea, 2011. "Is there a trade-off between inflation and output stabilization?," CEPR Discussion Papers 8407, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:8407
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    References listed on IDEAS

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    Keywords

    optimal policy; output gap; potential output;

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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