Announcements and Credibility of Monetary Policy
Publikation: Working paper › Forskning
An infinitely repeated monetary policy game à la Barro and Gordon (1983) is considered. Before the game starts the government announces a policy rule. If there is a slight probability that government is honest and a slight probability that the government makes mistakes, then a sufficiently patient government will have average loss close to its commitment loss in all sequentially rational equilibria of the infinitely repeated game
Originalsprog | Engelsk |
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Udgiver | Department of Economics, University of Copenhagen |
Antal sider | 11 |
Status | Udgivet - 1996 |
Bibliografisk note
JEL Classification: E52, D72
ID: 2982418