This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Journal: Macroeconomics
  4. April 2013
  5. Is There a Trade-Off between Inflation and Output Stabilization?

American Economic Journal:
Macroeconomics

ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)

Is There a Trade-Off between Inflation and Output Stabilization?

  • Alejandro Justiniano
  • Giorgio E. Primiceri
  • Andrea Tambalotti
American Economic Journal: Macroeconomics
vol. 5, no. 2, April 2013
(pp. 1–31)
Download Full Text PDF

Abstract

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)

Citation

Justiniano, Alejandro, Giorgio E. Primiceri, and Andrea Tambalotti. 2013. "Is There a Trade-Off between Inflation and Output Stabilization?" American Economic Journal: Macroeconomics, 5 (2): 1–31. DOI: 10.1257/mac.5.2.1

Additional Materials

JEL Classification

  • E12 General Aggregative Models: Keynes; Keynesian; Post-Keynesian
  • E23 Macroeconomics: Production
  • E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
  • E31 Price Level; Inflation; Deflation
  • E32 Business Fluctuations; Cycles
  • E52 Monetary Policy
There are no comments for this article.
Login to Comment