change is needed. The rigid system is preferable at early stages of technological development, when (lack of) commitment …

. 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 …

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 … commitment can not only resist fiscal pressure, but also discipline an ambitious fiscal policy maker to achieve socially …

optimal monetary and fiscal policies under commitment and discretion. With symmetric rigidities, fiscal policy will not be … rates and the terms of trade. Under commitment, both monetary policy and relative spending are inertial, while this is not … the case under discretion. We conduct numerical analyses to assess the welfare gains from commitment and from having …

reduction depends on the extent of the regulator's commitment: if it is possible to commit to the chosen policy, then the market …

implement the commitment solution with constraints on transfers. Second, absent current competition, the possibility of future …