Dennis, Richard - National Centre for Econometric Research (NCER) - 2009
In this paper I show that discretionary policymaking can be superior to timeless perspective policymaking and identify … variables that characterize the timeless perspective equilibrium appropriately, I use a New Keynesian DSGE model to show that … discretion can dominate timeless perspective policymaking when the Phillips curve is relatively flat, due, perhaps, to firm …