better explained as following optimal policy under discretion than under commitment. We estimate policy objectives of both …

We study the existence and uniqueness properties of monetary policy with limited commitment in LQ RE models. We use a … multiple equilibria under pure discretion, and under full commitment there are two distinct determinate regimes. We study how … these properties change over the continuum of intermediate cases between commitment and discretion. We find that although …

. Second, we show that the commitment (time inconsistent) solution does not normally involve zero inflation and output at its …, we show that the timeless perspective policy has the same steady state as the commitment case, but without any short …