Search Results - subject:"time consistency"

Whatever it takes? : market maker of last resort and its fragility

Choi, Dong Beom; Yorulmazer, Tanju - In: Journal of financial intermediation 60 (2024), pp. 1-14

Persistent link: https://www.econbiz.de/10015413354

Collective Choice with Heterogeneous Time Preferences

Pakhnin, Mikhail - 2021

This paper reviews recent research on the aggregation of heterogeneous time preferences. Main results are illustrated in simple Ramsey models with two or three agents who differ in their discount factors. We employ an intertemporal view on these models and argue that preferences of a decision...

Persistent link: https://www.econbiz.de/10012599228

The Fed'S Discount Window in "Normal" Times

Ennis, Huberto M.; Klee, Elizabeth - 2021

We study new transaction-level data of discount window borrowing in the U.S. from 2010–17, merged with quarterly data on bank financial conditions (balance sheet and revenue). The objective is to improve our understanding of the reasons why banks use the discount window during periods outside...

Persistent link: https://www.econbiz.de/10014048693

Wage Indexation and Time-Consistent Monetary Policy

Ball, Laurence M.; Cecchetti, Stephen G. - 2021

This paper investigates the effects of wage indexation on the time-consistent level of inflation. Departing from previous work on time-consistent policy, we study a structural model of the economy. Indexation reduces the cost of inflation, which is inflationary, and steepens the Phillips curve,...

Persistent link: https://www.econbiz.de/10013218529

Computing Time-Consistent Equilibria : A Perturbation Approach

Dennis, Richard J. - 2021

Time-consistency is a key feature of many important policy problems, such as those relating to optimal fiscal policy …

Persistent link: https://www.econbiz.de/10013220658

Time Consistent Fair Social Choice

Miyagishima, Kaname - 2021

of Pareto principle, time consistency, and equity requiring to reduce inequalities regardless of the past. We argue that … this impossibility result is due to a tension between equity and time consistency concerning how the past should be taken … the past into account and thus compatible with time consistency. Using this equity and time consistency, we characterize a …

Persistent link: https://www.econbiz.de/10013222480

Gradualism in Monetary Policy : A Time-Consistency Problem?

Stein, Jeremy C.; Sunderam, Aditya - 2021

lower short rates sharply when publicly-observed term premiums rise. In both cases, there is a time-consistency problem, and …

Persistent link: https://www.econbiz.de/10013224344

Optimal Time-Consistent Fiscal Policy with Uncertain Lifetimes

Calvo, Guillermo; Obstfeld, Maurice - 2021

This paper studies optimal fiscal policy in an economy where heterogeneous agents with uncertain lifetimes coexist. We show that some plausible social welfare functions lead to time-inconsistent optimal plans, and we suggest restrictions on social preferences that avoid the problem. The...

Persistent link: https://www.econbiz.de/10013229006

Expectations, Credibility, and Time-Consistent Monetary Policy

Ireland, Peter N. - 2021

This paper addresses the problem of multiple equilibria in a model of time-consistent monetary policy. It suggests that this problem originates in the assumption that agents have rational expectations and proposes several alternative restrictions on expectations that allow the monetary authority...

Persistent link: https://www.econbiz.de/10013234370

Time-Inconsistency and Welfare

Bhattacharya, Jay; Lakdawalla, Darius - 2021

Self-control devices, such as rehabilitation programs, group commitment, and informal fines, can make time-inconsistent smokers better off. Health economists have used this result to argue in favor of cigarette taxes that restrain smoking. However, taxes alone are not Pareto-improving overall,...

Persistent link: https://www.econbiz.de/10013234386