@techreport{NBERw3529,
 title = "Time-Consistent Policy and Persistent Changes in Inflation",
 author = "Laurence M. Ball",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "3529",
 year = "1990",
 month = "December",
 URL = "http://www.nber.org/papers/w3529",
 abstract = {This paper presents a model of dynamically consistent monetary policy that explains changes in inflation over time. In the model -- as in the postwar United States -- adverse supply shocks trigger persistent increases in inflation, and disinflation occurs when a tough policymaker creates a recession. The paper also proposes an approach to selecting a unique, plausible equilibrium in infinite-horizon models of monetary policy.},
}