We study the existence and uniqueness properties of monetary policy with limited commitment in LQ RE models. We use a … multiple equilibria under pure discretion, and under full commitment there are two distinct determinate regimes. We study how … these properties change over the continuum of intermediate cases between commitment and discretion. We find that although …

contracting without commitment. …

of experiments that those imprecisions are due to a lack of flexibility of the Log-quadratic form. Therefore, our results …