Economics and Philosophy (forthcoming)

Authors
Gabriele Contessa
Carleton University
Abstract
This paper has two goals. The first is to fill a gap in the literature on inductive risk by exploring the relevance of the notion of inductive risk to macroeconomics and monetary policy. The second goal is to draw some general lessons about inductive risk from the case discussed. The most important of these lessons is that the notion of inductive risk is no less relevant to the relationship between the proximate and distal goals of policy than it is to the relationship between policies and their goals.
Keywords Inductive Risk  Natural Rate Theory  Monetary Policy  Inflation  Phillips Curve  Unemployment
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