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Reputation in a Model of Monetary Policy with Incomplete Information

Barro, Robert J. - 1986

Previous models of rules versus discretion are extended to include uncertainty about the policymaker's "type." When people observe low inflation, they raise the possibility that the policymaker is committed to low inflation (type 1). This enhancement of reputation gives the uncommitted...

Persistent link: https://www.econbiz.de/10012477283

Rules versus Discretion

Barro, Robert J. - 1984

Under a discretionary regime the monetary authority makes no commitments about future money and prices. Then, if surprise inflation conveys economic benefits and if people form expectations rationally, it turns out that the equilibrium involves high and variable monetary growth and inflation....

Persistent link: https://www.econbiz.de/10012477615

Rules, Discretion and Reputation in a Model of Monetary Policy

Barro, Robert J. - 1983

In a discretionary regime the monetary authority can print more money and create more inflation than people expect. But, although these inflation surprises can have some benefits, they cannot arise systematically in equilibrium when people understand the policymaker's incentives and form their...

Persistent link: https://www.econbiz.de/10012478024

Inflationary Finance under Discrepion and Rules

Barro, Robert J. - 1982

Inflationary finance involves first, the tax on cash balances from expected inflation, and second, a capital levy from unexpected inflation. From the standpoint of minimizing distortions, these capital levies are attractive, ex post, to the policymaker. In a full equilibrium two conditions hold:...

Persistent link: https://www.econbiz.de/10012478219

A Positive Theory of Monetary Policy in a Natural-Rate Model

Barro, Robert J. - 1981

, which determine a Phillips Curve-type tradeoff between monetary growth/inflation and unemployment. Inflationary expectations … deviations between actual and expected inflation, which means that the equilibrium unemployment rate ends up independent of … slope of the Phillips Curve, the costs attached to unemployment versus inflation, and the level of the natural unemployment …

Persistent link: https://www.econbiz.de/10012478306

Money Stock Revisions and Unanticipated Money Growth

Barro, Robert J. - 1979

of business cycle theory relates this finding to temporary confusions between absolute and relative price changes. These … shifts in nominal aggregates is subject to question. Another strand of theory, based on long-term nominal contracts and …

Persistent link: https://www.econbiz.de/10012478820

Optimal Debt Management

Barro, Robert J. - 1995

Optimal debt management can be thought of in three stages. First, if taxes are lump sum and the other conditions for Ricardian equivalence hold, then the division of government financing between debt and taxes is irrelevant, and the whole level of public debt is indeterminate from an optimal-tax...

Persistent link: https://www.econbiz.de/10012473543