Krusell, Per; Martin, Fernando M.; Rios-Rull, Jose-Victor - Society for Economic Dynamics - SED - 2006
successive governments actually help limit the time-consistency problem: they lead to very limited debt accumulation, and long … use of debt and of nonconvexities whose fundamental origin is the disagreement between consecutive governments: the time-consistency …), the time-consistency problems associated with interest-rate manipulation are not as severe as may first appear. The …