Announcements and credibility of monetary policy

Research output: Contribution to journalJournal articleResearchpeer-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 languageEnglish
JournalOxford Economic Papers
Volume48
Issue number4
Pages (from-to)673-680
ISSN0030-7653
Publication statusPublished - 1996

ID: 3046178