Search Results - subject:"Time Inconsistency"

'The Cost of Political Intervention in Monetary Policy'

Cobham, David; Papadopoulos, Athanasios; Zis, George - School of Economics and Finance, University of St. Andrews - 2001

Data from a unique monetary 'experiment' conducted in the UK during the period 1994-97 are used to investigate the cost of political intervention in monetary policy. The paper finds that the difference between government bond yields in Germany (but not the US) and the UK was systematically...

Persistent link: https://www.econbiz.de/10005673178

The Pre-commitment Advantage of Having a Slow Legislative System

Frijters, Paul; Tieman, Alexander F. - Tinbergen Instituut - 2001

In this paper it is argued that the slowness of the legislativesystem implies pre-commitment of legislation for at least the periodit takes to change a law. A simple model illustrates the benefit ofthis pre-commitment.

Persistent link: https://www.econbiz.de/10011256018

Monetary and fiscal policy dynamics in an asymmetric monetary union

Clausen, Volker; Wohltmann, Hans-Werner - 2001

Persistent link: https://www.econbiz.de/10001644940

Monetary and Fiscal Policy Dynamics in an Asymmetric Monetary Union

Clausen, Volker; Wohltmann, Hans-Werner - 2001

This paper investigates the dynamic effects of monetary and fiscal policy in a monetary union, which is characterized by asymmetric interest rate transmission. This asymmetry gives rise to intertemporal reversals in the relative effectiveness of policy on member country outputs. The direction...

Persistent link: https://www.econbiz.de/10014122176

Reflections on the Current Fashion for Central Bank Independence

Bibow, Jörg - 2001

This paper challenges the time-inconsistency case for central bank independence. It argues that the time-inconsistency … of monetary policy. Most worrisome, the inflationary bias featured prominently in the time-inconsistency literature has …

Persistent link: https://www.econbiz.de/10014126536

Time-Consistent Policies

Karp, Larry S.; Lee, In-ho - 2001

In many cases the optimal open-loop policy to influence agents who solve dynamic problems is time-inconsistent. We show how to construct a time-consistent open-loop policy rule. We also consider an additional restriction under which the time-consistent open-loop policy is stationary. We use...

Persistent link: https://www.econbiz.de/10014136619

Government incentives when pollution permits are durable goods

Haucap, Justus (contributor); Kirstein, Roland (contributor) - 2001

from Coase (1972), leasing can be one way to overcome the durable good monopolist’s time-inconsistency problem described … classification: D7,H2, K3 Encyclopedia of Law and Economics: 2300, 2500 Keywords: Emissions Permits, Pollution Tax, Time … Inconsistency, Durable Goods †We would like to thank Bouwe Dijkstra, Mathias Erlei, Alexander Neunzig, Dieter Schmidtchen and Peter …

Persistent link: https://www.econbiz.de/10003188156

The Pre-commitment advantage of having a slow legislative system

Frijters, Paul; Tieman, Alexander F. - 2001

Persistent link: https://www.econbiz.de/10011313929

Globalization and human capital formation

Andersson, Fredrik; Konrad, Kai A. - 2001

This paper compares education investment in closed and open economies without government and with a benevolent government. The fact that the time consistency problem in taxation can make labor mobility beneficial even if governments are fully benevolent - which is known from other contexts - is...

Persistent link: https://www.econbiz.de/10011339674

A guided tour of the world of rational expectations models and optimal policies

Jeanfils, Philippe - 2001

This working paper after quickly reviewing the different types of existing macro models presents some basic tools that have proved useful for analysing monetary policy in recent years. Through the use of a simple quantitative forward-looking model of output, inflation and interest rate...

Persistent link: https://www.econbiz.de/10011622603