EconPapers    
Economics at your fingertips  
 

Expectations, credibility, and time-consistent monetary policy

Peter Ireland ()

No 9812, Working Papers (Old Series) from Federal Reserve Bank of Cleveland

Abstract: This paper addresses the problem of multiple equilibria in a model of time-consistent monetary policy. The author suggests that the problem originates in the assumption that agents have rational expectations and proposes several alternative restrictions on expectations that allow the monetary authority to build credibility for a disinflationary policy by demonstrating that it will stick to that policy even if it imposes short-run costs on the economy.

Keywords: Monetary policy; Rational expectations (Economic theory) (search for similar items in EconPapers)
Date: 1998, Revised 1998
New Economics Papers: this item is included in nep-dge and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://www.clevelandfed.org/~/media/content/newsr ... licy%20pdf.pdf?la=en Full text (application/pdf)

Related works:
Journal Article: EXPECTATIONS, CREDIBILITY, AND TIME-CONSISTENT MONETARY POLICY (2000) Downloads
Working Paper: Expectations, Credibility, and Time-Consistent Monetary Policy (1999) Downloads
Working Paper: Expectations, Credibility, and Time-Consistent Monetary Policy (1999) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcwp:9812

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers (Old Series) from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2020-07-12
Handle: RePEc:fip:fedcwp:9812