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- W2750705756 abstract "Adopting a single instead of multiple targets can be an effective way to overcome the classic time-inconsistency problem. The choice of a single mandate depends on the trade openness and the credibility. Reduced-form empirical results show as central banks become less credible, they are more likely to adopt a pegged exchange rate, and the tendency to peg depends on trade openness. In a model with “loose commitment,” as credibility falls, either an inflation target or a pegged exchange rate is more likely to be adopted. A relatively closed (highly open) economy would adopt an inflation target (exchange rate peg)." @default.
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- W2750705756 date "2018-09-09" @default.
- W2750705756 modified "2023-09-30" @default.
- W2750705756 title "Dealing with Time Inconsistency: Inflation Targeting versus Exchange Rate Targeting" @default.
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- W2750705756 doi "https://doi.org/10.1111/jmcb.12551" @default.
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