Kobayashi [Kobayashi, T., 2003. Multiplicative uncertainty in a model without inflationary bias. Economics Letters 80, 317-321.] claims that an increase in multiplicative uncertainty on the transmission mechanism of monetary policy improves social welfare when central bank's preferences are highly uncertain. We show that this result applies only when society is strictly conservative. (C) 2009 Elsevier B.V. All rights reserved.
Revisiting the role of multiplicative uncertainty in a model without inflationary bias / Ciccarone, Giuseppe; Enrico, Marchetti. - In: ECONOMICS LETTERS. - ISSN 0165-1765. - STAMPA. - 104:1(2009), pp. 37-39. [10.1016/j.econlet.2009.03.020]
Revisiting the role of multiplicative uncertainty in a model without inflationary bias
CICCARONE, Giuseppe;
2009
Abstract
Kobayashi [Kobayashi, T., 2003. Multiplicative uncertainty in a model without inflationary bias. Economics Letters 80, 317-321.] claims that an increase in multiplicative uncertainty on the transmission mechanism of monetary policy improves social welfare when central bank's preferences are highly uncertain. We show that this result applies only when society is strictly conservative. (C) 2009 Elsevier B.V. All rights reserved.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
