Announcements and credibility of monetary policy

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningfagfællebedømt

An infinitely repeated monetary policy game à la Barro and Gordon 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
TidsskriftOxford Economic Papers
Vol/bind48
Udgave nummer4
Sider (fra-til)673-680
ISSN0030-7653
StatusUdgivet - 1996

ID: 3046178