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We introduce a new type of incentive contract for central bankers: inflation forecast contracts, which make central … bankers’ remunerations contingent on the precision of their inflation forecasts. We show that such contracts enable central … bankers to influence inflation expectations more effectively, thus facilitating more successful stabilization of current …
Persistent link: https://www.econbiz.de/10014179421
We introduce a new type of incentive contract for central bankers: inflation forecast contracts, which make central … bankers’ remunerations contingent on the precision of their inflation forecasts. We show that such contracts enable central … bankers to influence inflation expectations more effectively, thus facilitating more successful stabilization of current …
Persistent link: https://www.econbiz.de/10009236277
Persistent link: https://www.econbiz.de/10009558160
Persistent link: https://www.econbiz.de/10010485839
We study communication in ambiguous environments. Agents communicate individual decisions sequentially. Based on the signal that an agent receives, she revises her private information. When signals are ambiguous, we show that agents may agree to disagree forever. Although the learning process...
Persistent link: https://www.econbiz.de/10014484275
Persistent link: https://www.econbiz.de/10001744800
Collective consumption decisions taken by the members of a household may prove inefficient. The impact of such inefficient household decisions on market performance is investigated. At one extreme, market efficiency can occur even when household decisions are inefficient, namely when household...
Persistent link: https://www.econbiz.de/10009725479
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Collective consumption decisions taken by the members of a household may prove inefficient. The impact on market performance depends on whether household inefficiencies are caused by inefficient net trades with the market or by inefficient distribution of resources within households. Inefficient...
Persistent link: https://www.econbiz.de/10011399478
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