Persson, Torsten; Tabellini, Guido - In: Handbook of macroeconomics : volume 1, part C, (pp. 1397-1482). 1999
This chapter surveys the recent literature on the theory of macroeconomic policy. We study the effect of various … incentive constraints on the policy making process, such as lack of credibility, political opportunism, political ideology, and … divided government. The survey is organized in three parts. Part I deals with monetary policy in a simple Phillips curve model …
