TY  - JOUR
AU  - Ball,Laurence
TI  - Why Does High Inflation Raise Inflation Uncertainty?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3224
PY  - 1990
Y2  - January 1990
UR  - http://www.nber.org/papers/w3224
L1  - http://www.nber.org/papers/w3224.pdf
N1  - Author contact info:
Laurence M. Ball
Department of Economics
Johns Hopkins University
Baltimore, MD 21218
Tel: 410/516-7605
Fax: 410/516-7600
E-Mail: lball@jhu.edu
AB  - This paper presents a model of monetary policy in which a rise in inflation raises uncertainty about future inflation. When inflation is low, there is a consensus that the monetary authority will try to keep it low. When inflation is high, policymakers face a dilemma: they would like to disinflate, but fear the recession that would result. The public does not know the tastes of future policymakers, and thus does not know whether disinflation will occur.
ER  -