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consequences of transparency about those mechanisms for credibility are evaluated. …
Persistent link: https://www.econbiz.de/10011419304
Persistent link: https://www.econbiz.de/10001538408
consequences of transparency about those mechanisms for credibility are evaluated. …
Persistent link: https://www.econbiz.de/10001561843
Central banks often make announcements even though, in models in which dynamic time inconsistency of optimal policy plays a role, they have an incentive to lie. This paper studies the way inflation targeting affects the incentives the central bank faces in announcing its target inflation rate...
Persistent link: https://www.econbiz.de/10014078808
Central banks often make announcements even though, in models in which dynamic time inconsistency of optimal policy plays a role, they have an incentive to lie. This paper studies the way inflation targeting affects the incentives the central bank faces in announcing its target inflation rate...
Persistent link: https://www.econbiz.de/10014118009
Persistent link: https://www.econbiz.de/10010510929
We develop a model of monetary policy with two key features: (i) the central bank has private information about its long-run target for the policy rate; and (ii) the central bank is averse to bond-market volatility. In this setting, discretionary monetary policy is gradualist, or inertial, in the...
Persistent link: https://www.econbiz.de/10013224344
We develop a model of monetary policy with two key features: (i) the central bank has private information about its long-run target for the policy rate; and (ii) the central bank is averse to bond-market volatility. In this setting, discretionary monetary policy is gradualist, or inertial, in the...
Persistent link: https://www.econbiz.de/10012457100