rule to minimize a quadratic loss function using the actual projection model of the Bank of Canada (ToTEM). The paper finds …

tools such as loan-to-value regulations are the most effective and least costly, followed by bank capital regulations and …

This paper studies the cost of limited commitment when a central bank has the discretion to adjust policy whenever the … costs of honoring its past commitments become high. Specifically, we consider a central bank that seeks to implement optimal … policy in a New Keynesian model by committing to a price-level target path. However, the central bank retains the flexibility …