American Economic Journal: Macroeconomics
no. 2, April 2013
We find that the answer is no in an estimated DSGE model of the US
economy in which exogenous movements in workers' market power
are not a major driver of observed economic fluctuations. If they are,
the tension between the conflicting stabilization objectives of monetary
policy increases, but with negligible effects on the equilibrium
behavior of the economy under optimal policy. (JEL E12, E23, E24,
E31, E32, E52)
Justiniano, Alejandro, Giorgio E. Primiceri, and Andrea Tambalotti.
"Is There a Trade-Off between Inflation and Output Stabilization?"
American Economic Journal: Macroeconomics,
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
Price Level; Inflation; Deflation
Business Fluctuations; Cycles