How severe is the time-inconsistency problem in monetary policy?

Advances in Economics and Econometrics: Theory and Applications, Eighth World Congress, Volume III

Volumn , Issue , 2003, Pages 123-150

  Albanesi, Stefania ^a   Chari, V V ^b   Christiano, Lawrence J ^c  

^a BOCCONI UNIVERSITY   (Italy)

^b UNIVERSITY OF MINNESOTA   (United States)

^c NORTHWESTERN UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 37349076726     PISSN: None     EISSN: None     Source Type: Book    
DOI: 10.1017/CBO9780511610264.006     Document Type: Chapter

References (13)

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4. Chari, V. V., L. J. Christiano, and M. Eichenbaum (1998), “Expectation Traps and Discretion”, Journal of Economic Theory, 81(2), 462-492.
5. Christiano, L. J., M. Eichenbaum, and C. Evans (1997), “Sticky Price and Limited Participation Models of Money: A Comparison”, European Economic Review, 41, 1201-1249.
6. Cole, H. and N. Kocherlakota (1998), “Zero Nominal Interest Rates: Why They Are Good and How to Get Them”, Federal Reserve Bank of Minneapolis Quarterly Review, 22(2), 2-10.
7. Ireland, P. (1997), “Sustainable Monetary Policies”, Journal of Economic Dynamics and Control, 22, 87-108.
8. Kydland, F. and E. C. Prescott (1977), “Rules Rather than Discretion: The Inconsistency of Optimal Plans”, Journal of Political Economy, 85(3), 473-491.
9. Lucas, R. E., Jr. and N. Stokey (1983), “Optimal Fiscal and Monetary Policy in an Economy without Capital”, Journal of Monetary Economics, 12, 55-93.
10. Neiss, K. (1999), “Discretionary Inflation in a General Equilibrium Model”, Journal of Money, Credit, and Banking, 31(3), 357-374.
11. Nicolini, J. P. (1998), “More on the Time Consistency of Monetary Policy”, Journal of Monetary Economics, 41(2), 333-350.
12. Svensson, L. (1985), “Money and Asset Prices in a Cash-in-Advance Economy”, Journal of Political Economy, 93(5), 919-944.
13. Woodford, M. (1994), “Monetary Policy and Price Level Determinacy in a Cash-in-Advance Economy”, Economic Theory, 4, 345-380.