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Dynamic commitment and imperfect policy rules

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  • Joseph G. Haubrich
  • Joseph A. Ritter

Abstract

An examination of the dynamics of commitment, showing that because the decision regarding rules versus discretion occurs in real time, opting for discretion is often the better choice, since it leaves open the possibility of adopting rules later on.

Suggested Citation

  • Joseph G. Haubrich & Joseph A. Ritter, 1996. "Dynamic commitment and imperfect policy rules," Working Papers (Old Series) 9601, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:9601
    DOI: 10.26509/frbc-wp-199601
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    18. Joseph G. Haubrich & Joseph A. Ritter, 1996. "Commitment as investment under uncertainty," Working Papers (Old Series) 9606, Federal Reserve Bank of Cleveland.
    19. Joseph G. Haubrich & Joseph A. Ritter, 1992. "Commitment as irreversible investment," Working Papers (Old Series) 9217, Federal Reserve Bank of Cleveland.
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    1. Joseph G. Haubrich & Joseph A. Ritter, 1996. "Commitment as investment under uncertainty," Working Papers (Old Series) 9606, Federal Reserve Bank of Cleveland.

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    Keywords

    Monetary policy;

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