Horvath, Michal - Centre for Dynamic Macroeconomic Analysis, University … - 2008
Policy, Timeless Perspective,
Nominal Rigidity, Simple Targeting Rules.
1. Introduction
In this paper, we propose simple …
frameworks is in general time inconsistent and so Woodford (2003) has proposed
formulating optimal policy from a timeless … perspective; one should model optimal
policy as the policy that would have been intended for the current period had
such a policy …