Jump to ContentJump to Main Navigation

The B.E. Journal of Macroeconomics

Editor-in-Chief: Abraham, Arpad / Cavalcanti, Tiago

Ed. by Carceles-Poveda , Eva / Debortoli, Davide / Kambourov, Gueorgui / Lambertini, Luisa / Pavoni, Nicola / Ruhl, Kim

2 Issues per year


IMPACT FACTOR increased in 2014: 0.389
5-year IMPACT FACTOR: 0.406

SCImago Journal Rank (SJR) 2014: 0.610
Source Normalized Impact per Paper (SNIP) 2014: 0.518
Impact per Publication (IPP) 2014: 0.419

Optimal Monetary Policy with a Convex Phillips Curve

Demosthenes N. Tambakis1

1University of Cambridge,

Citation Information: The B.E. Journal of Macroeconomics. Volume 9, Issue 1, ISSN (Online) 1935-1690, DOI: 10.2202/1935-1690.1649, June 2009

Publication History

Published Online:
2009-06-11

This paper shows that convexity of the short-run Phillips curve is a source of positive inflation bias even when policymakers target the natural unemployment rate, that is when they operate with prudent discretion, and their loss function is symmetric. Optimal monetary policy also induces positive co-movement between average inflation, average unemployment and inflation variability---suggesting a new motive for inflation stabilization policy---and positively skewed unemployment distributions. The reduced form model is applied to the post-disinflation period (1986-2006) in developed countries and its properties are illustrated numerically for the United States.

Keywords: monetary policy; inflation bias; inflation variability; prudent discretion

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Kevin X. D. Huang and Guoqiang Tian
Macroeconomic Dynamics, 2011, Volume 15, Number 04, Page 441

Comments (0)

Please log in or register to comment.