Time Consistency and Targeting Rules in Singular Rational Expectations Models

Recent policy formulation has emphasised targeting rules. These often lead to policy problems which are singular, and need special solution techniques. We set out solutions for the control of singular linear rational expectations models with quadratic objectives. These are both time inconsistent and time consistent equilibria. We apply them to an open economy model.

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Year of publication:	2005-11-11
Authors:	Pierse, Richard G. ; Blake, Andrew P.
Institutions:	Society for Computational Economics - SCE
Subject:	Targeting rules \| Time consistency \| Singular RE models

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Series:	Computing in Economics and Finance 2005.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Computing in Economics and Finance 2005 Number 166
Classification:	E52 - Monetary Policy (Targets, Instruments, and Effects) ; C61 - Optimization Techniques; Programming Models; Dynamic Analysis
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10005343045