Li, Jingyuan; Liu, Yongming; Tian, Guoqiang - In: Journal of Macroeconomics 31 (2009) 4, pp. 523-533
This paper develops a reputation strategic model of monetary policy with a continuous finite or infinite time horizon. By using the optimal stopping theory and introducing the notions of sequentially weak and strong rational expectation equilibria, we show that the time inconsistency problem may...