How upside down are political business cycles when there is output persistence
Caleiro, A.
,
(2009)
,
"How upside down are political business cycles when there is output persistence"
,
Research in Economics
,
63
,
22-26
.
CEFAGE Author(s)
António Bento Ratão Caleiro
Abstract
This note shows in what circumstances output persistence may invert the pattern of the political business cycle when inflation expectations are of the adaptive or rational type and the government preferences are quadratic over output and inflation.