#2007-037B "The Optimal Inflation Target in an Economy with Limited Enforcement"
by Gaetano Antinolfi, Costas Azariadis, and James B. Bullard
September 2007
Revised November 2007

We formulate the central bank’s problem of selecting an optimal long-run inflation rate as the choice of a distorting tax by a planner who wishes to maximize discounted stationary utility for a heterogeneous population of infinitely-lived households in an economy with constant aggregate income. More...

#2000-012A "Private and Public Circulating Liabilities"
by Costas Azariadis, James B. Bullard, and Bruce D. Smith


Changes in the legal and technological environment in the U.S. have created the possibility of private banknote issue, or its electronic equivalent. We wish to understand the implications of this possibility for economic performance. More...

PUBLISHED: Journal of Economic Theory, July/August 2001, 99(1-2), pp. 59-116

#1998-015B "Trend-Reverting Fluctuations in the Life-Cycle Model"
by Costas Azariadis, James B. Bullard, and Lee Ohanian

Revised September 2001

(Previously circulated under the title,"Complex Eigenvalues and Trend-Reverting Fluctuations.")

Aggregate time series provide evidence of short term dynamic adjustment that appears to be governed by complex or negative real eigenvalues. This finding is at odds with the predictions of reasonably parameterized, convex one-sector growth models with complete markets. More...

PUBLISHED: Journal of Economic Theory, December 2004, 119(2), pp. 334-56