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How severe is the time-inconsistency problem in monetary policy? Author info | Abstract | Publisher info | Download info | Related research | Statistics Stefania Albanesi
V. V. Chari
Lawrence J. Christiano
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This study analyzes two monetary economies, a cash-credit good model and a limited-participation model. In these models, monetary policy is made by a benevolent policymaker who cannot commit to future policies. The study defines and analyzes Markov equilibrium in these economies and shows that there is no time-inconsistency problem for a wide range of parameter values.
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Article provided by Federal Reserve Bank of Minneapolis in its journal Quarterly Review .
Volume (Year): (2003)
Issue (Month): Sum ()
Pages: 17-33
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Handle: RePEc:fip:fedmqr:y:2003:i:sum:p:17-33:n:v.27no.3Contact details of provider: Postal: 90 Hennepin Avenue, P.O. Box 291, Minneapolis, MN 55480-0291 Phone: (612) 204-5000 Web page: http://minneapolisfed.org/ More information through EDIRC
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Keywords: Monetary policy ; Inflation (Finance) ; Money supply ; Other versions of this item:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Ireland, Peter N., 1997.
"Sustainable monetary policies ,"
Journal of Economic Dynamics and Control ,
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Andrew Atkeson & Patrick J. Kehoe, 2001.
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390, Federal Reserve Bank of Minneapolis.
[Downloadable!] Henry Siu, 2005.
"Time Consistent Monetary Policy with Endogenous Price Rigidity ,"
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Andrew Atkeson & V. V. Chari & Patrick J. Kehoe, 2007.
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Other versions: Albanesi, Stefania, 2003.
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Francesco Salsano, 2005.
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Stefania Albanesi, 2002.
"The Time Consistency of Optimal Monetary Policy with Heterogeneous Agents ,"
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"The Time Consistency of Optimal Monetary Policy with Heterogeneous Agents ,"
Working Papers
207, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
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David M. Arseneau, 2004.
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Finance and Economics Discussion Series
2004-45, Board of Governors of the Federal Reserve System (U.S.).
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Tambakis, D.N., 2008.
"Optimal Monetary Policy with a Convex Phillips Curve ,"
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0859, Faculty of Economics, University of Cambridge.
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Other versions: Andrew Atkeson & Vyjayanthi Chari & Patrick Kehoe, 2007.
"The Optimal Choice of a Monetary Policy Instrument ,"
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