A Graphical Exposition of the Inconsistency of Optimal Monetary Plans


Publication: Journal of Economic Education

Volume: Volume 37, Number 3

Issue: Summer 2006

Pages: 340-347

Author(s): Frank G. Steindl

Address (Principal Author):
Frank G. Steindl  

Regents Professor of Economics

Department of Economics

Oklahoma State University

Stillwater, OK 74078-4011

Phone:  405-744-5091

Fax:  405-744-5180

Internet Address (Principal Author): steindl@okstate.edu

Title: A Graphical Exposition of the Inconsistency of Optimal Monetary Plans

Abstract: The inability of discretionary policy to be socially optimal is demonstrated geometrically.  The geometric framework is used to show that attempts to exploit the Phillips curve results in stagflation.


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