UK macroeconomic volatility and the welfare costs of inflation

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Polito, Vito; Spencer, Peter; Cardiff University;
  • Publisher: Cardiff University
  • Subject: HB

This paper explores the implications of time varying volatility for optimal monetary policy and the measurement of welfare costs. We show how macroeconomic models with linear and quadratic state dependence in their variance structure can be used for the analysis of opti... View more
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    12 references, page 1 of 2

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