Announcements and Credibility of Monetary Policy

Publikation: Working paperForskning

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
OriginalsprogEngelsk
UdgiverDepartment of Economics, University of Copenhagen
Antal sider11
StatusUdgivet - 1996

Bibliografisk note

JEL Classification: E52, D72

ID: 2982418