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Monetary Policy Delegation and Optimal Wage Indexation[Note 1. I thank Richard Disney, John Driffill and one referee ...]
Author(s) -
Mourmouras Iannis A.
Publication year - 1997
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/1467-8586.00043
Subject(s) - indexation , economics , delegation , wage , inefficiency , inflation (cosmology) , monetary policy , rest (music) , monetary economics , macroeconomics , labour economics , microeconomics , medicine , physics , cardiology , management , theoretical physics
This note shows that delegation of policy to a central banker who puts more weight on inflation stabilization than does the rest of society could reduce the alleged social inefficiency of private wage indexation decisions that arises in models of discretionary monetary policy.