specifies the highest allowable inflation rate. The more severe the time inconsistency problem, the more tightly the cap … monetary authority discretion to react to its private information against society's need to guard against the time … inconsistency problem arising from the temptation to stimulate the economy with unexpected inflation. Although this dynamic …

members' fiscal policy, and unionwide regulation of banks. When there is no time inconsistency problem, there is no free …We analyze the setting of monetary and nonmonetary policies in monetary unions. We show that in these unions a time … inconsistency problem in monetary policy leads to a novel type of free- rider problem in the setting of nonmonetary policies, such …

We study identification of time inconsistency when an agent at time 0 makes an advance commitment, and later at time 1 … natural to assume additional properties like concavity; and with supplementary cardinal information. However, time … inconsistency can be point identified from willingness to pay for different alternatives in both periods, if utility from money is …