Announcements and credibility of monetary policy
Research output: Contribution to journal › Journal article › Research › peer-review
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
Original language | English |
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Journal | Oxford Economic Papers |
Volume | 48 |
Issue number | 4 |
Pages (from-to) | 673-680 |
ISSN | 0030-7653 |
Publication status | Published - 1996 |
ID: 3046178