We consider a continuous time framework featuring a central bank, private agents and a financial market. The central bank's objective is to maximize a functional, which measures the classical trade-off between output and inflation over time plus income from the sales of inflation indexed bonds...

We study a game theoretic model of the conflict which arises between a monetary authority and the private sector with regard to the inflation-rate. Building on the simple static Barro and Gordon model, we assume that rather than playing a one shot game, the monetary authority and private sector...

We consider Merton's version of the Solow model Merton (1975), where capital per labor is assumed to follow the diffusion process: dk(t)=[sf(k(t))-(n lambda-sigma2)k(t)]dt sigmak(t)dW(t), with constant per capital savings rate s. Merton defined a golden rule in this context as one for which...

We consider a framework featuring a central bank, private and financial agents as well as a financial market. The central bank's objective is to maximize a functional, which measures the classical trade-off between output and inflation plus income from the sales of inflation linked calls minus...