The Costs and Benefits of Price Stability: An Assessment of Howitt's Rule
Year: 1996
Type: article
Abstract: A common objection to making price stability the primary objective of monetary policy is that, once inflation is under way, it is less costly to live with a little inflation that it is to achieve a stable price level (as proposed in Howitt’s Rule). The author assesses the conditions that Howitt’s Rule requires and shows how reduced output growth caused by inflation might dramatically affect the outcome.
DOI: 10.20955/r.78.23-38
Author: Daniel L. Thornton
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2142605567