989 resultados para 348-C0002F
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Kevin McCabe received his PhD in Roman Studies from McMaster University. He has taught at The University of Regina, Nipissing University and Brock University. He was the editor of Gracefully Speaking: newsletter of the Grace Mennonite Church and The Poetry of Old Niagara. He is also the co- editor of The Poetry of Lucy Maud Montgomery and The Lucy Maud Montgomery Album.
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This paper studies monetary policy in an economy where the central banker's preferences are asymmetric around optimal inflation. In particular, positive deviations from the optimum can be weighted more, or less, severely than negative deviations in the policy maker's loss function. It is shown that under asymmetric preferences, uncertainty can induce a prudent behavior on the part of the central banker. Since the prudence motive can be large enough to override the inflation bias, optimal monetary policy could be implemented even in the absence of rules, reputation, or contractual mechanisms. For certain parameter values, a deflationary bias can arise in equilibrium.
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