Can Tighter Money Now Mean Higher Inflation Now?
Author InfoSchulze, H. Abstract Sargent and Wallace (1981) have shown by an example, termed “spectacular”, that a lowering of the growth rate of money may in some cases increase the rate of inflation – not only in the end, but even from the start. I show that this “spectacular” result ceases to hold if the central bank is restricted always to choose the lowest final inflation rate. On the other hand, the spectacular result may appear again if the parameters of their example are changed in a suitable way. Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options: 1. Check below under “Related research” whether another version of this item is available online. 2. Check on the provider’s web page whether it is in fact available. 3. Perform a search for a similarly titled item that would be available. Publisher InfoPaper provided by Uppsala – Working Paper Series in its series Papers with number 1996-03. Download refere
