Himmels, Christoph; Kirsanova, Tatiana - In: Journal of Economic Dynamics and Control 37 (2013) 3, pp. 649-665
We study the degree of precommitment that is required to eliminate multiplicity of policy equilibria, which arise if the policy maker acts under pure discretion. We apply a framework developed by Schaumburg and Tambalotti (2007) and Debertoli and Nunes (2010) to a standard New Keynesian model...