-looking. Specifically, optimal monetary policy under commitment is associated with a determinate REE that is stable under learning, whereas …, under discretion, the central bank has to be sufficiently inflation averse for the equilibrium to have these properties. …

, optimal monetary policy under commitment is associated with a determinate rational expectations equilibrium that is stable … under least squares learning for all parameter constellations considered, whereas, under discretion in policy-making, the …

, optimal monetary policy under commitment is associated with a determinate rational expectations equilibrium that is stable … under least squares learning for all parameter constellations considered, whereas, under discretion in policy-making, the …

We re-examine optimal monetary policy when lump-sum taxes are unavailable. Under commitment, we show that, with … the reverse. Under discretion, we show that the economy will not necessarily tend to the Friedman Rule, as Obstfeld found …. Instead it may tend to the critical debt level at which there is no cheating incentive under commitment, and inflation and …

multiple equilibria under pure discretion, and under full commitment there are two distinct determinate regimes. We study how … these properties change over the continuum of intermediate cases between commitment and discretion. We find that although …We study the existence and uniqueness properties of monetary policy with limited commitment in LQ RE models. We use a …

better explained as following optimal policy under discretion than under commitment. We estimate policy objectives of both …

the policy maker acts under pure discretion. We apply a framework developed by Schaumburg and Tambalotti (2007) and … traps under limited commitment and identify the minimum degree of commitment which is needed to escape from these traps. We …

multiple equilibria under pure discretion, and under full commitment there are two distinct determinate regimes. We study how … these properties change over the continuum of intermediate cases between commitment and discretion. We find that although …We study the existence and uniqueness properties of monetary policy with limited commitment in LQ RE models. We use a …

. Second, we show that the commitment (time inconsistent) solution does not normally involve zero inflation and output at its …, we show that the timeless perspective policy has the same steady state as the commitment case, but without any short …