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- W3088390476 abstract "In a canonical staggered pricing model, monetary discretion leads to multiple private sector equilibria. The basis for multiplicity is a form of policy complementarity. Specifically, prices set in the current period embed expectations about future policy, and actual future policy responds to these same prices. For a range of values of the fundamental state variable — a ratio of predetermined prices — there is complementarity between actual and expected policy, and multiple equilibria occur. Moreover, this multiplicity is not associated with reputational considerations: it occurs in a two-period model." @default.
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- W3088390476 date "2001-01-08" @default.
- W3088390476 modified "2023-09-27" @default.
- W3088390476 title "The Pitfalls of Monetary Discretion, Working Paper 01-08" @default.
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