Carl E. Walsh

TL;DR: In this article, the authors incorporate a theory of unemployment into the new Keynesian theory of inflation and empirically test its implications for inflation dynamics, showing that the elasticity of inflation with respect to unemployment depends on structural characteristics of the labor market such as the matching technology that pairs vacancies with unemployed workers.

TL;DR: The 1989 Reserve Bank of New Zealand Act provides a natural experiment in which the effects of institutional change on economic relationships can be studied as mentioned in this paper, finding that a large rise in the New Zealand tradeoff has occurredre d since implementation of the Act.

TL;DR: In this paper, the authors parameterize centralbank independence in terms of partisanship and term length, focusing on the implications of alternative policy structures for real economic activity, and find that the appointment of a conservative central banker increases the optimal term length and leads to lower average inflation but need not increase the volatility of output.

TL;DR: The authors derived a linear-quadratic model for monetary policy analysis that is consistent with sticky prices and search and matching frictions in the labor market and showed that the second-order approximation to the welfare of the represented agent depends on inflation and unemployment "gaps" that depend on current and lagged unemployment.

TL;DR: In this article, the optimal power under inflation targeting is derived under perfect and imperfect information, and the fundamental tradeoff between accountability and stabilization depends on the degree of transparency, defined as the ability to monitor the central bank's performance.