Faust, Jon; Svensson, Lars E O - C.E.P.R. Discussion Papers - 1999
We examine a central bank's endogenous choice of degree of control and degree of transparency, under both commitment … and discretion. Under commitment, we find that the deliberate choice of sloppy control is far less likely under a standard … degree of control is the only equilibrium. With regard to the degree of transparency, under commitment, a sufficiently …