Announcements and Credibility of Monetary Policy

Research output: Working paperResearch

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 languageEnglish
PublisherDepartment of Economics, University of Copenhagen
Number of pages11
Publication statusPublished - 1996

ID: 2982418