optimal band width widens in response to a decrease in policy-makers' commitment reputation, an increase in the cost of …

. Comparing decisions made in these two environments allows us to ask whether the degree of policy commitment has a measurable …

credibility as a commitment device. But the contract’s strength is that renegotiation can be very visible and this facilitates a …

expectations is time-inconsistent. This, it is argued, undermines the credibility of the optimal policy in the eyes of the private … inconsistency problem. They assume that policy-makers suffer a loss of reputation if they renege on earlier commitments. With this …

The incentive to renege on a commitment to a fixed exchange rate is shown to be state contingent. A fixed exchange rate … policy is not viable under `unusual' circumstances, and the incentive to violate the commitment is larger in the case of …

since, under ambitious fiscal policy makers, inflation bias and lack of monetary policy credibility may obtain in … asynchronous game framework that generalises the standard commitment analysis. It allows concurrent and partial commitment; both … outcomes can be prevented if monetary commitment is sufficiently strong relative to fiscal commitment. Interestingly, monetary …