Balke, Nathan S; Haslag, Joseph H - In: International Economic Review 33 (1992) 3, pp. 619-28
This paper examines the phenomenon of "Fed watching" within the context of a macroeconomic policy game. Following A. Cukierman and A. H. Meltzer's 1986 article, the policymaker's preferences are private information and noisy monetary control causes past observations of money growth to be a noisy...