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This paper uses Whiteman's(1986) frequency-domain optimization methodology to parameterize the precommitment period in a standard rational expectations policy design model. This allows researchers to adopt an empirical approach to the time consistency issue. That is, the operative commitment...
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force, are comparable in many important respects with publicly announced Bank of Japan money projections. Using a derivative … of the law of iterated projections, we estimate the information value of disclosure on the part of the Bank of Japan and … Japan has been small in terms of reducing money surprises, but that disclosure by the Federal Reserve would have …
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Policy rules that are consistent with inflation targeting are examined in a small macroeconometric model of the US economy. We compare the properties and outcomes of explicit "instrument rules" as well as "targeting rules." The latter, which imply implicit instrument rules, may be closer to...
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