Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83969
Authors: 
Minford, Patrick
Srinivasan, Naveen
Year of Publication: 
2005
Series/Report no.: 
Cardiff Economics Working Papers E2005/9
Abstract: 
This paper offers an alternative rationalization for opportunistic behaviour i.e., a gradual disinflation strategy where policymakers react asymmetrically to supply shocks, opting to disinflate only in recessionary period. Specifically, we show that adaptive expectations combined with asymmetry in the Phillips curve of a specific sort together provide an optimizing justification for opportunism. However, the empirical basis for these conditions to be satisfied in the current low-inflation context of most OECD countries remains however to be established.
Subjects: 
Deliberate disinflation
Opportunistic disinflation
JEL: 
E52
E58
Document Type: 
Working Paper

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