We study the existence and uniqueness properties of monetary policy with limited commitment in LQ RE models. We use a … 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 …

. 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 …

macroeconomics, commitment to fully contingent rules is better than discretion, but when the government can only commit to simple … discretion and commitment to a simple rule in the context of social protection, showing when and why discretion may be better … than commitment. We argue that the forces highlighted in our model can provide a rationale for several highly distortive …

investment. For the first case, we find that even absent asymmetric information, a lack of regulatory commitment can cause …

This paper evaluates the effects of the lack of regulatory commitment on emission tax applied by the regulator … find that the lack of commitment leads to lower taxation and abatement that yield larger emissions and, consequently, a … social welfare. Thus, our analysis indicates that the lack of commitment has a negative impact of welfare although this …

This paper evaluates the effects of the lack of regulatory commitment on emission tax applied by the regulator … find that the lack of commitment leads to lower taxation and abatement that yield larger emissions and, consequently, a … social welfare. Thus, our analysis indicates that the lack of commitment has a negative impact of welfare although this …

investment. For the first case, we find that even absent asymmetric information, a lack of regulatory commitment can cause …

investment. For the first case, we find that even absent asymmetric information, a lack of regulatory commitment can cause …