Recent policy formulation has emphasised targeting rules. These often lead to policy problems which are singular, and need special solution techniques. We set out solutions for the control of singular linear rational expectations models with quadratic objectives. These are both time inconsistent...

In this paper we consider the quadratic optimal control problem with regime shifts and forward-looking agents. This extends the results of Zampolli (2003) who considered models without forward-looking expectations. Two algorithms are presented: The first algorithm computes the solution of a...