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- W3122691914 abstract "In a forward-looking business cycle model, central banks can achieve the (timeless)optimal commitment equilibrium even in the absence of a commitment technology, if they are delegated with an objective function that is different from the societal one. The paper develops a general linear-quadratic method to solve for the optimal delegation parameters that generate the optimal amount of inertia in a Markov-perfect equilibrium, and studies the optimal design of some policy regimes that are nested within this framework: the (squared) optimal targeting rule; inflation, output-gap growth and nominal income growth targeting; and inflation and output-gap contracts." @default.
- W3122691914 created "2021-02-01" @default.
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- W3122691914 date "2014-11-01" @default.
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- W3122691914 title "Delegating optimal monetary policy inertia" @default.
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- W3122691914 doi "https://doi.org/10.1016/j.jedc.2014.08.019" @default.
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