Wohltmann, Hans-Werner; Totzek, Alexander - In: Credit and Capital Markets 45 (2012) 1, pp. 27-50
The aim of this paper is to solve the inconsistency problem à la Barro/Gordon within a New Keynesian model and to derive time-consistent interest rate rules of Taylor-type. We find a multiplicity of time-consistent rules. In contrast to the famous Kydland/Prescott-Barro/Gordon approach,...