Announcements and Credibility of Monetary Policy
Research output: Working paper
An infinitely repeated monetary policy game à la Barro and Gordon (1983) 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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Publisher | Department of Economics, University of Copenhagen |
Number of pages | 11 |
Publication status | Published - 1996 |
ID: 2982418