Rules and discretion in public sector decision making are compared in a macroeconomic setting where there is a potential role for an active stabilization policy when the policymaker has private information about nominal shocks. The credibility of announcements about the state of nature is shown...

The aim of this paper is to clarify the policy strategies pursued in the Nordic countries in the 1970s and 1980s to attain internal and external balance. A distinction is made between (1) a bridging strategy, (2) a sheltering or adaptive strategy, and (3) a production strategy of export-led...

It is shown that nonmarket-clearing prices can persist in noncooperative Nash competition among firms when the dis semination of information depends critically on the flexibility of pr ices. The key to this explanation is that the value of the informatio n revealed by quantity signals when...