Lossani, Marco; Natale, Piergiovanna; Tirelli, Patrizio - In: Scottish Journal of Political Economy 45 (1998) 1, pp. 33-47
Time inconsistency in monetary policy can be addressed appointing a conservative central banker. But incomplete information about the central banker's preferences impairs the performance of delegation schemes. Firstly, the ensuing ex ante variability of monetary response lowers welfare....